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German Chancellor Olaf Scholz stated that his country is willing to assist Namibia to set up a local lithium processing infrastructure. Namibia is trying to develop processing and refining industries to capture more of the profits of global demand for battery material. Lithium demand has soared ever since the auto industry shifted toward EVs and was further accelerated by proposed bans on fossil-fuel cars by the end of the decade.
German Chancellor Olaf Scholz stated that his country is willing to assist Namibia to set up a local lithium processing infrastructure. Namibia is trying to develop processing and refining industries to capture more of the profits of global demand for battery material. Lithium demand has soared ever since the auto industry shifted toward EVs and was further accelerated by proposed bans on fossil-fuel cars by the end of the decade. China, the world’s top lithium refiner, and a leading producer dominate the supply chain, but Western governments and international companies are trying to challenge that and see Africa’s lithium reserves as an opportunity.
Africa’s lithium production is set to rapidly increase this decade. From 40,000 tonnes this year, the continent will likely produce 497,000 tonnes in 2030, commodities trader Trafigura estimates, with the bulk of that coming from Zimbabwe.
Locating more processing steps where the raw materials are available, will not only create greater local prosperity but ensure that Germany will have more suppliers in the future, said the Chancellor.
In November last year, Namibia inked a deal with the EU which will ensure the trade bloc’s access to Namibia’s rare earth metals to power the global transition to green energy. This comes as Namibia along with other African countries which have huge lithium deposits demands that lithium mined there should be processed locally to enhance local beneficiation.
Read Also:
https://trendsnafrica.com/namibia-demands-more-csr-investment-from-miners/
https://trendsnafrica.com/namibia-all-for-local-lithium-processing/
According to global data, the price for lithium carbonate—the compound that gets extracted from the ground—has shot up 432% year over year, hitting over N$1.1 million (US$62,000) per metric tonne from an average of N$190,000 (US$11,000) six years ago. Lithium is a critical component in rechargeable lithium-ion batteries, which are used in most personal electronics and electric vehicles and the price spike is due to the booming electric vehicle market.
