African lithium and mineral value chain development

African nations are attempting to transition from being exporters of raw lithium to becoming integrated participants in the global battery supply chain. During a forum in Accra, experts highlighted the necessity of developing regional value chains that encompass processing, refining, and manufacturing to ensure capital and technology remain on the continent.

While the continent holds lithium resources estimated at approximately US$9 trillion, economic success depends on moving beyond simple extraction. Several countries, including the Democratic Republic of the Congo, Zimbabwe, Ethiopia, Ghana, Mali, Namibia, Nigeria, and Rwanda, are currently developing lithium projects. Notable developments include the Manono North mine in the Democratic Republic of the Congo and the Arcadia plant in Zimbabwe, which has begun shipping lithium sulfate.

Recent discussions at the Africa Centre for Energy Policy (ACEP) Summer School emphasized that capturing more value within the global energy transition requires a regional mineral-feedstock value chain. Beyond lithium, there are significant opportunities for processing gold and platinum-group metals, with Ghana leading the continent in gold production.

However, infrastructure remains a critical hurdle. Power transmission gaps have been identified as a major bottleneck, with up to 25% of installed generation capacity in some sub-Saharan countries constrained by grid limitations. Addressing these gaps in transmission and refining capacity is seen as essential for transitioning from resource abundance to sustained industrial growth. Profitability for producers remains subject to global market volatility and will be heavily influenced by costs related to energy, transport, financing, and processing.