Massive Untapped African Resources
Africa's Lithium Boom: Africa is emerging as a leading lithium supplier over other countries, and forecasted to supply a fifth of the world’s lithium by 2030.
China, the leader in global lithium, is investing heavily into Africa. After Zimbabwe, Namibia is the next country in Chinese investors’ sights. In March 2023, Huayou Cobalt made a symbolic investment in Askari, an Australian firm exploring in Erongo and Uis areas of Namibia. Xinfeng, a Chinese exploration company active in Erongo, Namibia, has mined tens of thousands of tonnes of raw lithium ore and shipped it to China.
EV Battery Boom is Driving Lithium Demand
“White Gold” Lithium Supply Shortage
The global demand for lithium is expected to surpass 2 million metric tons of lithium carbonate equivalent by 2030, more than doubling the demand forecast for 2025. In the next decade, increases in battery demand for electric vehicles (EVs) will be a major driver for lithium consumption.
The EU and increasingly more US states aim to ban petrol/diesel car sales by 2035, prompting car makers like GM, Ford, Tesla, and Volvo to invest in mining companies for lithium, which is in short supply.
The supply of lithium is expected to face chronic shortages by 2030, even with the addition of new mining and recycling projects. This is due to a projected fall in the amount of lithium extracted from deposits around the world and the heavy concentration of refining capacity in only a few countries. Increasing production is challenging due to environmental hazards and the vast amounts of water required for conventional extraction methods. New technologies hold promise for reducing the environmental impact, but the challenge is to deploy them at scale.
Government and Global Interests in Africa's Lithium Boom
Amos Hochstein, Joe Biden's Energy Security Envoy
Visited Africa and Namibia, emphasizing U.S. investment strategy in Africa's minerals, promoting competition among countries and companies.
Anthony Viljoen, Andrada's CEO
Anticipates global significance for Erongo, Uis region in lithium and other critical energy-transition metals, including tin and tantalum.
Thierry Breton, EU Internal Markets Commissioner
Overseeing the bloc's strategy for critical minerals supplies, identifies Namibia's Uis region as having the potential to host the world's largest lithium hard rock mines.
