Congolese energy storage battery manufacturing plant

London and Kinshasa, November 24, 2021 – The Democratic Republic of the Congo (DRC) can leverage its abundant cobalt resources and hydroelectric power to become a low-cost and low-emissions producer of lithium-ion battery cathode precursor materials.

A planned battery energy storage system for Mongolia will be the largest of its type in the world and provide a blueprint for other developing countries to follow as they decarbonize their power systems. Mongolia's coal-dependent energy sector accounts for about two thirds of Mongolia's greenhouse gas emissions.

In so doing, the country and the rest of Africa can extend their access from the USD271 billion battery precursor segment to the more lucrative USD1.4 trillion combined battery cell production and cell assembly segments of the battery minerals global value chain.

James Frith, head of energy storage at BNEF said: “For regions to successfully attract battery component or cell manufacturing they need to have either a supply of key raw materials or local demand for batteries. If they have access to raw materials, they can use this supply to attract downstream manufacturers.

This is three times cheaper than what a similar plant in the U.S. would cost. A similar plant in China and Poland would cost an estimated $112 million and $65 million, respectively. Precursor material produced at plants in the DRC could be cost competitive with material produced in China and Poland but with a lower environmental footprint.

“European cell manufacturers currently rely heavily on China for battery precursors. However, the raw materials for batteries are, in most cases, imported into China from Africa and refined before being exported to Europe.