lithium-ion battery factory estimated at 39 million USD in the DRC against 112 million USD in China
In a study released during DRC AFRICA BUSINESS FORUM, BloombergNef argues that the Democratic Republic of the Congo could leverage its abundant cobalt resources and hydroelectric power to become a low-cost, low-emission producer country. lithium-ion battery cathode precursors.
The research paper estimates that it would cost $ 39 million to build a 10,000 metric tonne cathode precursor plant in the DRC. That’s three times cheaper than a similar factory in the United States would cost, whereas if it was built in China or Poland, it would cost $ 112 million and $ 65 million, respectively.
The market analyst’s data also shows that the emissions associated with the production of batteries could be reduced by 30% compared to the existing supply chain that crosses China, if the cathode precursor materials – the intermediate material between the raw and finished cathode material – were produced in the DRC, with Poland handling the production of cathode materials and cells, and Germany the final assembly of the pack. This is due to the DRC’s proximity to cathodic raw materials and its heavy dependence on hydroelectric power stations.
In a press release, reported by mining.com, Kwasi Ampofo, lead author of the report and head of metals and mining at BNEF, argues: “The DRC’s cost competitiveness stems from its relatively cheap access to land. and its low engineering, procurement and construction costs, or EPC compared to the United States, Poland and China ”.
In his opinion, European cell manufacturers are currently heavily dependent 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. According to him, European automakers can reduce their emissions by shortening the transport distance and capitalizing on the DRC’s hydroelectric network and proximity to raw materials.
The electric vehicle market represents an opportunity of $ 7 trillion by 2030 and $ 46 trillion by 2050, according to projections by BloombergNerf.
