Launch of Six Research Publications on Critical Minerals and renewable energy value chains in Southern Africa

At the Alternative Mining Indaba on February 4, 2025, we launched six research publications analysing the intersection of critical minerals extraction and renewable energy value chains. The six countries covered are Namibia, the Democratic Republic of Congo (DRC), Zimbabwe, Madagascar, Mozambique, and Zambia.

As global demand for cobalt, lithium, manganese, nickel, graphite, and rare earth elements rises, these reports provide an in-depth examination of key actors and initiatives at the centre of mining and critical minerals and renewable energy value chains.

Context: Opportunities and Risks in Africa’s Critical Minerals Boom

We commissioned the six reports to understand key actors and initiatives at the core of the shift towards renewable energy, electric vehicles (EVs), and low-carbon technologies. This is because mineral-rich African countries have a unique opportunity to integrate into global value chains as suppliers of critical minerals and potential manufacturers of green technologies spurred by the global energy transition.

Potential for Economic Development – If managed effectively, the extraction and processing of these minerals could drive industrialization, create jobs, and contribute to economic diversification.

While the potential economic prospects are real, the demand for minerals comes with major environmental, social and governance (ESG) challenges: Weak Governance & Environmental Risks – Poor regulatory oversight, land rights violations, environmental degradation, and illicit financial flows pose risks to sustainable development. These risks jeopardize the potential to ensure a Just Energy Transition is attained, especially for mining workers and impacted communities

Key Findings from the Country Reports

Namibia: Critical Minerals and the Green Hydrogen Economy

1. Green hydrogen projects are expanding. For hydrogen to be “green”, it must be produced from renewable energy sources. Because of the connection between critical minerals and green technologies such as wind turbines, solar panels and battery storage systems, the potential synergies between green hydrogen production and critical minerals are apparent.
2. But due to weak linkages between mineral extraction, beneficiation for local industrialization, the report exposes the disharmony between current mining and industrial policies and, in conclusion, argues for regional value chains for Namibia’s rich lithium, graphite, manganese, cobalt, copper and rare earth elements.

Democratic Republic of Congo (DRC): Cobalt Supply Chains and Governance Challenges

1. The DRC holds the world’s largest cobalt reserves but lacks infrastructure for local processing and beneficiation. It is therefore an exporter of unprocessed minerals.
2. The report identifies the DRC-Zambia Battery Manufacturing collaboration as promising pathway to equitable and resource led development. But this is a very slow initiative that is taking long to take-off.
3. A huge red flag remains on DRC’s mining sector: ongoing ESG risks due to human rights violations, child labour, and governance weaknesses in artisanal and industrial mining, the DRC seems to be treading on the Resource Curse 2.0 or “paradox of abundance”.

Zimbabwe: Lithium’s Role in the EV Battery Market

1. Zimbabwe has the sixth largest reserves of lithium in the world, and first in the world. It is therefore a strategic player in EV battery production and value chains.
2. The country is also endowed with ritical minerals such as Platinum Group Metals (PGMs), manganese, nickel, and Rare Earth Elements.
3. But the country has no beneficiation policies.
4. Further, Zimbabwe suffers from chronic energy shortages, making minerals-driven industrialisation a farfetched aspiration.
5. The study recommends Zimbabwe to develop a Critical Minerals Strategy and a List of Critical Minerals.

Madagascar: Graphite Extraction and Energy Poverty

1. Despite being a leading graphite producer, number three in the world, Madagascar has minimal local value addition. All its graphite is exports as raw materials.
2. Whilst the country supplies the world with feedstock for green technologies, it imports finished products such as solar panels and lithium-ion batteries, the study notes serious incidences of energy poverty among the Malagasy.
3. If a Just Energy Transition is to be achieved, Madagascar must adapt IRENA Policy Framework for a Just and Inclusive Transition to guide it into an equitable future.

Mozambique: Renewable Energy vs. Fossil Fuel Priorities

1. Mozambique is at the centre of the global transition towards a sustainable energy and climate-resilient future, headlined by the country’s substantial graphite reserves.
2. In addition to its battery-grade natural graphite, it has aluminium and rare earth elements. Mozambique’s potential for lithium discoveries is high.
3. Mozambique is, therefore, strategically positioned as a supplier of electric battery-grade minerals, and investors are in a rush to grab a share of its critical raw materials. But the graphite is exported in raw form to destinations such as the US (for Tesla EVs), Japan, and China. Jobs and wealth are, therefore, externalised.
4. While the country’s leadership has stated that it must exploit opportunities to add value and industrialise, the country has low industrial capacity.

The report recommends the country to explore integration into regional value chains within the SADC region. This must be based on a sound Critical Minerals Strategy and Critical Mineral List following the example of Zambia and developed countries such as Australia and Canada.

Zambia: Positioning as a Hub for EV Battery Components

1. Zambia is rich in critical minerals with copper being the most known.
2. It has developed a copper production strategy to seize the demand opportunity occasioned by the global energy transition.
3. It is also one of the first African countries to develop a Critical Mineral Strategy. But this can be more comprehensive.
4. Like most African countries, Zambia’s sustainability practices in the mining sector are still lagging. There is need to improve on enforcement of labour and environmental standards to promote sustainable mining practices and social inclusion.

Zambia must manage geo-economics effectively as it has signed several cooperation agreements and partnerships to beneficiate its critical minerals.