Africa hosts substantial reserves of critical minerals but largely lacks the industrial infrastructure to process and refine these resources, capturing only the initial extraction value. The continent’s existing processing capacities are insufficient to leverage the full economic potential of its mineral wealth. This situation underlines a missed opportunity for Africa to benefit from the burgeoning market for critical minerals, essential for various sectors including technology and renewable energy.
For instance, the global market for lithium-ion battery recycling, valued at $6.5 billion in 2022, is anticipated to escalate to $35 billion by 2031. In contrast to Africa’s nascent involvement, the United States and European Union are advancing through public investments and regulatory frameworks to enhance battery recycling and material recovery, including innovative solutions like the “battery passport.”
The importance of technology in shaping global lifestyles brings to light the significance of the origins and supply chains of critical minerals like magnesium, cobalt, lithium, and copper, which are pivotal for various modern applications and national security.
Despite Africa harbouring 30% of the planet’s critical mineral reserves, its nations have yet to gain equitable benefits from this wealth. Addressing this requires substantial investment in local value-added processing capabilities, which could catalyse development and align with the African Union’s strategic visions, like the African Mining Vision and the African Commodities Strategy, aimed at integrating the continent into global value chains.
However, implementation challenges persist, as seen in the limited operationalization of the African Minerals Development Centre. At the Mining Indaba conference in Cape Town, the urgency to redefine Africa’s role in the global mineral market was evident, with the Atlantic Council’s Africa Centre’s task force on critical minerals outlining key focus areas for the continent’s mining sector.
The narrative around critical minerals is dual-edged; while their current significance is undeniable, there is a growing emphasis on finding sustainable and less extractive alternatives. This shift could impact Africa’s potential gains from its mineral resources, highlighting the need for strategic investments in diversifying and strengthening its mineral value chains to secure long-term economic benefits and development. Today, the world needs what Africa has, but that may not be the case tomorrow, Africa must value add or lose out in the future.
