Africa’s mining industry has long been a cornerstone of global commodities markets. Today, its strategic significance extends well beyond traditional extractive value — playing a central role in the global transition to electrification and clean energy. As demand for electric vehicles (EVs) accelerates worldwide, Africa’s rich endowment of critical minerals positions the continent as a vital supplier in the evolving global mobility economy.
Africa’s Mineral Endowment and Global Share
The continent’s mineral profile is among the richest and most diversified in the world:
- Cobalt: The Democratic Republic of Congo (DRC) accounts for roughly 70% of global cobalt production, a metal essential for lithium-ion batteries.
- Platinum Group Metals (PGMs): South Africa and Zimbabwe together contribute over 70% of global PGM supply, critical in hydrogen fuel cells and catalytic applications.
- Manganese: South Africa is the largest producer globally, with nearly 30% of world output, supporting steel production and emerging battery technologies.
- Lithium: Although Africa currently represents a smaller share of global lithium compared to Australia and South America, discoveries in Zimbabwe, Mali and Democratic Republic of Congo suggest future growth potential.
- Graphite: Mozambique and Madagascar are among the continent’s key graphite producers, with graphite forming a core component of battery anodes.
Collectively, Africa supplies an outsized share of the raw materials required for EV batteries and supporting technologies, even as global demand continues to surge.
Mining and the EV Supply Chain: The Numbers Behind the Shift
The International Energy Agency (IEA) tracks the explosive rise in critical mineral demand driven by EV adoption:
By 2030, demand for lithium-ion battery minerals — lithium, cobalt, nickel, graphite and manganese — is projected to grow by more than 30 times relative to 2020 levels.
Demand for cobalt is forecast to increase by more than 20% annually into the early 2030s, even as battery chemistries evolve.
Africa’s current share of global EV battery mineral production directly supports approximately 50–60% of critical supply — primarily through cobalt and PGMs — with an expanding footprint in graphite and manganese.
These figures underscore a simple reality: global EV manufacturers and battery producers cannot achieve decarbonisation goals without Africa’s mineral base.
Policy, Investment, and Value Chain Transformation
While Africa’s resource endowment offers opportunity, capturing maximum value requires intentional strategy. To date, the continent has primarily exported raw materials, leaving much of the value-added processing overseas. However, emerging policy frameworks and investment partnerships are shifting that paradigm.
Regional and National Initiatives
African Continental Free Trade Area (AfCFTA): By reducing tariffs and harmonising trade policy, AfCFTA seeks to strengthen intra-African mineral processing and stimulate export diversification.
Host Government Policies: Countries such as Zambia, Namibia and South Africa are adapting mining codes to encourage beneficiation, downstream processing and local value creation.
Foreign Direct Investment (FDI) and Strategic Partnerships
International firms are increasingly investing in African battery mineral projects. These investments often tie access to long-term supply agreements with commitments to local infrastructure development, skills transfer, and research partnerships — a model that aligns private capital with public social outcomes.
Challenges and Risk Dynamics
Despite its endowment, Africa faces structural hurdles that could impede optimal participation in the EV value chain:
Infrastructure constraints in transport, power and logistics increase operational costs.
Regulatory uncertainty in select jurisdictions dampens capital mobilisation and long-term planning.
Skills gaps in geological surveying, mineral processing and advanced manufacturing remain significant.
Addressing these challenges through stable policy frameworks, predictable tax regimes and targeted human capital development will be essential to unlocking the continent’s long-term potential.
The Next Five Years: Strategic Outlook (2026–2031)
1. Beneficiation and Downstream Growth
Countries will increasingly invest in local processing facilities for battery minerals. New plants for refining cobalt sulfate, graphite anodes and manganese alloys are under feasibility studies, signalling a shift from export of ores to export of capacity.
2. Strategic Global Partnerships
China, the European Union and the United States are all building strategic mineral partnerships with African producers. These alliances aim to diversify supply chains and mitigate geopolitical risk — a trend likely to attract billions in FDI.
3. Sustainability and ESG Integration
Environmental, social and governance (ESG) standards are becoming core to mining operations. African producers who align with global best practice in environmental management, labour rights and community engagement will attract premium capital and long-term contracts with global battery manufacturers.
Conclusion: Africa’s Leadership in the EV Era
As the world accelerates toward electrification, Africa’s mining sector stands at the nexus of climate ambition and economic opportunity. The continent’s ability to supply critical minerals, coupled with strategic policy and investment, places it at the heart of the global EV supply chain.
For policymakers, business leaders and investors alike, the next five years will define whether Africa merely participates in the EV transition — or leads it.
