African Development Bank President Highlights Africa’s Pivotal Role in the Future of the Electric Vehicle Market

Akinwumi Adesina, President of the African Development Bank (AfDB) Group, emphasized the critical role Africa plays in shaping the future of the electric vehicle (EV) market. He pointed out that Africa is the primary source of crucial green metals required for EV development. Additionally, the continent boasts abundant renewable energy resources, making it a key player in the transition towards sustainable transportation.

Key Points:

1. Africa’s Abundance of Green Metals:
   • Africa holds a dominant position as the primary provider of essential green metals crucial for EV production. This includes platinum (70%), cobalt (52%), manganese (46%), bauxite (25%), and graphite (21%).
2. Rich Renewable Energy Resources:
   • The continent is endowed with vast renewable energy sources, particularly hydro and solar. Notably, Morocco hosts the Noor Ouarzazate, the world’s largest concentrated solar zone.
3. Global Growth of the Electric Vehicle Market:
   • The global electric vehicle market has experienced significant expansion driven by environmental concerns and technological advancements. China, the United States, and Europe stand as the three leading markets for EVs worldwide.
4. Advantageous Battery Manufacturing Costs:
   • Adesina referenced Bloomberg NEF’s assessment, revealing that the cost of manufacturing lithium-ion precursor batteries in Africa is three times lower than in the US, China, and Poland.
5. Positive Economic Growth in Africa:
   • Adesina highlighted Africa’s resilience and progress, noting that the continent’s economies exhibited a real GDP growth of 3.8% in 2022, surpassing the global average of 3.5%.
6. The Significance of the Desert-to-Power Project:
   • The AfDB and its partners are actively developing the $20 billion Desert-to-Power project across 11 Sahel region countries. Once completed, it will be the largest solar zone globally.
7. Africa’s Investment Potential:
   • Adesina urged investors to consider Africa for its promising investment opportunities across various sectors, including oil and gas, minerals, renewable energy, agriculture, and labor force.

Conclusion: Akinwumi Adesina’s remarks underscore Africa’s pivotal role in shaping the future of the electric vehicle market. The continent’s abundant green metal resources and renewable energy potential provide a strong foundation for sustainable transportation. As Africa continues to demonstrate economic growth and resilience, it emerges as a promising destination for strategic investments, with potential benefits extending globally. Initiatives like the Desert-to-Power project and forums such as the Africa Investment Forum are instrumental in harnessing this potential and driving economic development across the continent.

BD