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Nigeria-based Africa Finance Corp. (AFC) last week signed an expression of interest to provide USD 100 million in financing to Kobaloni Energy. This project is backed by mining veteran Mick Davis’ Vision Blue.
Africa could have its first cobalt sulphate refinery by the end of 2025. Cobalt sulphate is a key component in the manufacture of lithium batteries. China has a refinery and is capable of making the most sought-after product used by electric vehicles. The planned facility is coming up in Zambia, which in turn sources its rare earth requirements from the neighboring Democratic Republic of Congo.
Nigeria-based Africa Finance Corp. (AFC) last week signed an expression of interest to provide USD 100 million in financing to Kobaloni Energy. This project is backed by mining veteran Mick Davis’ Vision Blue.
AFC chief executive officer Samaila Zubairu said that the company would reach an investment decision within 3-4 months and the production could start in 18 months if the project goes smoothly.
Importantly, the project would help diversify a crucial part of the global battery-making supply chain away from China, which currently accounts for about 75% of global cobalt refining capacity. Still, prices have plunged from highs above USD 80 000 a ton two years ago to about USD 28 000 on the London Metal Exchange due to oversupply, making investments in the metal more difficult.
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As the demand for electric vehicles is set to increase phenomenally in the coming years, the Zambian plant will have its order book full. In developed countries like the US, there is a huge pent-up demand for electric vehicles.
