Op-ed: Here is what is holding Africa’s EV revolution back

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Africa possesses the minerals to lead the global EV battery value chain, yet risks remaining trapped in a resource extraction model unless it builds its own industrial capacity. Edward Moleke Makwana, Auto Writer at Forbes Africa, notes that the continent’s abundance of critical minerals is being undermined by a lack of local processing and manufacturing.

• The continent can continue exporting raw minerals or leverage the global EV transition to climb the value chain and become a key supplier of battery components. The opportunity lies in building local capacity and attracting global partners to cut the world’s dependence on Asian supply chains. 

• Weak economic growth has kept domestic demand for these materials low, making industrialisation challenging without decisive government intervention. Case studies from Indonesia and China demonstrate that strategic industrial policies are vital for moving from extraction to value-addition. 

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By Edward Moleke Makwana

Africa has emerged as a key player in the global EV battery value chain—but the real question is whether it can transition from a supplier of raw materials to a manufacturer of high-value battery components. The shift is urgent and timely. At this year’s Investing in African Mining Indaba—for the first time in its 31-year history—the automotive industry took centre stage, signalling a new era of opportunity for the continent.

Africa is rich in the critical minerals needed for lithium-ion batteries—cobalt, manganese, lithium and graphite. Yet almost all of these are exported, locking the continent into the lower rungs of the value chain while others cash in on battery production. This economic model, rooted in extraction, must evolve if Africa is to benefit meaningfully from the trillion-dollar EV revolution.

From extraction to empowerment

Take cobalt mining in DR Congo: while it powers EVs in Berlin and California, no batteries are produced locally. The imbalance is stark. Weak domestic demand—driven by low GDP per capita—undermines local processing and manufacturing potential. Unlike industrialised economies where economic growth pulls industrialisation forward, Africa must rely on strong government intervention to fill the gap.

The lack of local beneficiation means the continent misses out on the most lucrative parts of the battery value chain. Adding to the challenge is unreliable infrastructure—especially power. In countries like South Africa, high electricity costs have already eroded competitiveness in other heavy industries, such as ferrochrome and steel.

If Africa is to build a robust battery manufacturing sector, power generation and industrial capacity must be top priorities. Without this foundation, Africa risks remaining a mere supplier of raw inputs in a rapidly evolving global battery race.

Unlocking the EV opportunity

Despite these challenges, the EV transition offers Africa a rare window to leap forward. Countries like South Africa, Morocco, and Egypt—already home to growing automotive hubs—can integrate battery manufacturing into their supply chains. Morocco, for instance, has shown remarkable success in scaling vehicle assembly and could potentially expand into battery production. Likewise, South Africa’s automotive zones in Gauteng, Eastern Cape and KwaZulu-Natal offer a foundation on which to build.

What Africa can learn from Indonesia and China

Lessons from Indonesia and China offer useful models—albeit with caveats. Indonesia’s bold move to ban raw nickel exports pushed global firms to invest in local value addition. However, the country succeeded because it dominates nickel reserves, limiting competitors’ leverage. In contrast, Africa’s mineral resources are more widely distributed. A unilateral export ban on, say, manganese, could simply shift global buyers to countries like Australia or Brazil.

China’s rise was the result of decades of deliberate policy. Government incentives, research funding, and a strong industrial strategy all played a role. For Africa, the lesson is clear: developing an advanced battery industry will require sustained investment, long-term policy commitments, and coordinated efforts across R&D, infrastructure, and manufacturing.

Financing the shift

Scaling up local battery production will not be cheap. South Africa’s Automotive Industry Transformation Fund has already committed $27.7 million to key projects—from mineral beneficiation to EV supply chains. But much more is needed. Development banks, the African Union (AU), and private-sector investors must collaborate to pool resources. Institutions like the African Development Bank (AfDB) and European Development Fund (EDF) 

can play catalytic roles.

The African Association of Automotive Manufacturers is also lobbying governments to industrialise through the African Continental Free Trade Area (AfCFTA). However, the sector still suffers from deep infrastructure gaps and inconsistent policymaking, which hinder investment.

Overcoming structural barriers

Manufacturing batteries in Africa requires scale, and scale needs partners. A viable plant needs at least 30 GWh in production capacity—far beyond what most African firms can handle alone. This makes partnerships with experienced global players—particularly from China, South Korea, and Japan—crucial. Yet, such investors won’t commit without long-term policy certainty. Battery manufacturing operates on razor-thin margins, and policy instability turns away the capital needed to grow.

A defining decade

Africa stands at a crossroads. It can continue exporting raw minerals—or take bold steps to climb the battery value chain. Europe, while producing over 70% of its battery cells, remains dependent on Asia for materials like cathodes and anodes. Africa could fill this gap, becoming a strategic alternative supplier.

This decade could define whether the continent remains a source of raw materials or rises to become a global force in battery manufacturing. The opportunity is real. But so is the risk of missing out.

The article was first published by Forbes Africa.