The global shift towards renewable energy has intensified interest in Africa’s crucial mineral reserves, driving a surge in demand for resources essential to solar photovoltaic technology, wind farms, and electric vehicles. As major economies vie for strategic control over critical mineral value chains, Africa, boasting 30% of global mineral reserves, has witnessed increased investments, deals, and cooperation agreements in the sector. Here are the top five critical mineral investments in Africa in 2023:
- Japan and UK Joint Investments in African Critical MineralsIn September, Japan and the UK announced joint investments in Africa’s critical minerals to stabilize existing supply chains. The collaboration involves developing mines across various African countries, establishing economic and energy security frameworks, and acquiring mining sites. The partnership aims to diversify supplies and enhance local processing capabilities, addressing the demand for essential minerals.
- Q Global Commodities’ $1 Billion Investment in Southern and Eastern AfricaQ Global Commodities, in partnership with F9 Capital Management, invested $1 billion in the production of critical minerals in southern and eastern Africa. Focused on lithium, copper, and nickel, vital minerals for the energy transition, the venture targets South Africa, Botswana, Zambia, Tanzania, and Namibia. Plans include developing plants, logistics infrastructure, and eventually listing the venture publicly.
- Sinomine Resource Group’s Acquisition of Bikita Lithium Mine in ZimbabweChinese conglomerate Sinomine Resource Group acquired Zimbabwe’s largest lithium mine, the Bikita Lithium Mine, in a $180 million deal in July. The company plans to develop a dual lithium processing plant, producing significant quantities of spodumene concentrate and petalite annually. This acquisition aligns with Zimbabwe’s regional lithium hub ambitions and supports China’s goals of establishing new mining supply chains in Africa.
- AfDB’s Involvement in the Lobito Corridor ProjectThe African Development Bank (AfDB) signed an MOU in October to collaborate with Africa Finance Corporation, the European Commission, and governments of Angola, the DRC, Zambia, and the US. The partnership aims to mobilize resources for the Lobito Corridor and Zambia-Lobito transit projects, supporting sustainable and resilient critical mineral value chains. The initiative facilitates the transportation of copper and cobalt supplies from the Congo and Zambia to regional ports.
- Atlantic Lithium’s Mining Lease for Ewoyaa Project in GhanaIn October, Atlantic Lithium secured a 15-year exclusive mining lease for Ghana’s first lithium project, the Ewoyaa project. Financed by Piedmont Lithium and Ghana’s Minerals Income Investment Fund, the $185 million project includes a processing plant with significant production capacity. The venture positions Ghana as a leading critical minerals hub, contributing to global lithium production.
These investments underscore the growing importance of Africa’s critical mineral reserves in the global transition to sustainable energy sources.
