Africa Nears Milestone with First Cobalt Sulphate Refinery
Africa is on the brink of achieving a significant milestone with plans for its inaugural cobalt sulphate refinery, poised to be operational by the end of 2025.
This development, spearheaded by Nigeria-based Africa Finance Corp. (AFC) and backed by mining luminary Mick Davis’ Vision Blue, marks a crucial step in diversifying the global battery supply chain beyond China, a dominant player in cobalt refining.
Last week, AFC signed an expression of interest to provide $100 million in financing to Kobaloni Energy for the construction of the refinery in Zambia.
According to Samaila Zubairu, CEO of AFC, the investment decision is anticipated within the next 3-4 months.
Upon finalization of financing, production is slated to commence within 18 months, as confirmed by Johnny Velloza, co-founder of Kobaloni, via text message.
The establishment of this refinery holds immense significance as cobalt sulphate is a pivotal component in lithium-ion batteries, essential for various applications including electric vehicles and electronics.
While Zambia may not be a major cobalt producer, its proximity to the Democratic Republic of Congo, which accounts for a significant portion of global cobalt supply, provides strategic advantages for this venture.
Despite the potential benefits, the cobalt market has witnessed considerable volatility, with prices plummeting from historic highs of over $80,000 per ton two years ago to approximately $28,000 on the London Metal Exchange.
Oversupply has been a key factor driving this downturn, posing challenges for investments in the sector.
Nevertheless, the emergence of Africa’s first cobalt sulphate refinery signifies a notable shift in the global battery supply chain dynamics, offering opportunities for increased diversification and reducing dependence on Chinese refining capacity.
As Africa continues to make strides in the mining and energy sectors, initiatives like this underscore the continent’s potential to play a significant role in the evolving landscape of battery technology and renewable energy.
SOURCE:batterymetalsafrica.com
