DRC Sparks Power Revolution with Battery Manufacturing
By Mathews Kabamba
The Democratic Republic of Congo (DRC), has long fascinated me. Its ground literally bleeds blue, saturated with cobalt, a mineral essential to the tech industry.
This mineral-rich heart of Africa beats with potential, its veins pulse with minerals that are the lifeblood of our digital world today, it is the wealth beneath the soil that draws me to the Congo.
The DRC is home to over 70 percent of the world's cobalt reserves. Cobalt is essential for making lithium-ion batteries, which power many of the devices we use today, such as smartphones, laptops, and electric cars.
Another important mineral, lithium, is also abundantly present in the DRC. Lithium is used to make high-performance batteries and other products.
Despite having minerals that the world is clamouring for, the DRC remains poor.
Last year, the country was rated as one of the world's five poorest countries by the World Bank. Approximately 60 million Congolese, or roughly 62 percent of the population, survived on less than $2.15 per day. This is unacceptable for a country so rich in resources.
The DRC's abundant mineral resources have been a major contributor to the country's long-running conflicts. Various reports including those by the UN have previously indicated that armed groups have seized control of some mining areas and use the profits from mineral sales to finance their operations.
This has led to a phenomenon known as the "resource curse," in which the presence of valuable natural resources actually hinders economic and social development.
The over dependence on exports of raw materials has also hindered progress. The nation usually gains only the initial benefits rather than the complete value chain.
However, not all hope is lost because the country has embarked on an ambitious journey, shifting from its reliance on exporting materials in their raw form to adding value.
The journey entails the DRC, with the assistance of its cooperating partners, develop into a manufacturing hub in the precursor and battery sectors.
Groundbreaking MoU
Last year, at the Africa Leaders’ Summit held in Washington, the United States government signed a memorandum of understanding with the DRC and Zambia to support the development of a value chain in the electric vehicle (EV) battery sector.
The goal of this MOU is to establish an entire value chain—from mineral extraction to the assembly line—around EV batteries in the Democratic Republic of Congo and Zambia.
The shift from overreliance on natural resources to manufacturing and the diversification of the DRC's economy are essential for the country to achieve its full potential.
The establishment of a battery precursor industry in the DRC, if successful, could have far-reaching impacts. It would add value to the country’s mineral resources, accelerate industrialization, and create jobs for millions of young people not only in Congo but on the continent.
On the environmental side of things, the United Nations Economic Commission for Africa (UNECA) states that the move could cut battery-related emissions by 30 percent as compared to the current supply chain that passes through China.
However, with every shift come a number of obstacles. At the core of the matter is the inadequate development of the country's infrastructure. Its energy and transport systems continue to be insufficient, thereby requiring substantial improvements in order to foster a prosperous manufacturing sector.
Beyond this, the DRC must also confront the formidable challenge of competing with well-established battery manufacturing powerhouses, the majority of which are based in China.
Journey towards Battery Electric Vehicle (BEV)
Earlier this year, the Economic Commission for Africa, Afreximbank, and the African Development Bank signed Framework Agreement with the Democratic Republic of Congo and Zambia for the establishment of Special Economic Zones (SEZ) for the production of Battery Electric Vehicle (BEV) and related services.
As the Project's financial and technical partners, respectively, Afreximbank and UNECA will play a key facilitating role as prescribed by the Framework Agreement.
That being said, it is brave and admirable for the DRC to want to change its economy from one that depends on natural resources to one that is based on industry. The country can become a world leader in electric vehicles and clean energy if its cards are played correctly.
The importance of EVs is growing as the world transitions to a clean energy economy. EVs play a key role in reducing our reliance on fossil fuels and combating climate change. EVs also offer a number of economic benefits, including job creation and reduced air pollution costs.
I urge businesses, governments, and other stakeholders to collaborate and support the DRC's battery manufacturing sector. By working together, we can help the DRC to achieve its full potential and create a better future for its people.