- The DRC-Africa Business Forum 2021 that concluded last week on November 25 in the Congolese capital, Kinshasa had some significant take aways.
- The very theme of the Forum “Economic Integration of the Congolese in the Value Chain of the Electric Battery Industry through Innovative Financial Solutions” echoed the global mood as the world is going towards renewable energy and carbon neutrality spurring demand for electric vehicles to replace fossil fuel engines
The DRC-Africa Business Forum 2021 that concluded last week on November 25 in the Congolese capital, Kinshasa had some significant take aways. The very theme of the Forum “Economic Integration of the Congolese in the Value Chain of the Electric Battery Industry through Innovative Financial Solutions” echoed the global mood as the world is going towards renewable energy and carbon neutrality spurring demand for electric vehicles to replace fossil fuel engines
The Forum witnessed several commitments by the various stakeholders to promote the development of a battery minerals industry in the Democratic Republic of Congo in the next two years.
The Democratic Republic of Congo (DRC) has already embarked on a project to build a cathode precursor plant. This will enable the country to harness its mineral resource wealth to sustainably commence low-emissions-production of battery precursors, an input of lithium-ion batteries, used in electric vehicles.
Speaking at the opening of the DRC-Africa Business Forum Vera Songwe, UN Under-Secretary-General and Executive Secretary of the Economic Commission for Africa (ECA) said that the DRC which accounts for 70% of world’s cobalt reserves occupies a strategic position in the battery value chain. By capturing 20% of the market share for battery production, it can add around US$54 billion to its income and raise its GDP tremendously. A recent study by BloombergNEF indicated that building a 10,000 metric-ton battery precursor plant in the DRC would cost $39 million while a similar plant in the US, China and Poland would cost an estimated US$ 120 million, $112 million and $65 million, respectively. Given its proximity to the mineral resources needed to produce the precursors, the emissions will also be far lesser than in other countries. The study also projected that the battery and electric vehicles (BEV) value chain will be approximately an US$ 8.8 trillion market opportunity by 2025, and US$46 trillion by 2050.
