Africa’s Role in the $57 Trillion Electric Vehicle Market: Opportunities and Potential

Akinwumi Adesina, President of the African Development Bank Group, emphasized Africa’s pivotal position in the burgeoning electric vehicle (EV) market during the Africa Investment Forum 2023. He highlighted that the global EV market is projected to soar from $7 trillion to a staggering $57 trillion by 2050. Africa’s significance in this surge lies in its abundant resources of crucial green metals for EV development. Adesina outlined that Africa provides a substantial portion of metals such as platinum, cobalt, manganese, bauxite, and graphite, essential for the production of electric vehicles.

Key Points:

1. Abundance of Green Metals:
   • Africa is the primary source of vital green metals required for the manufacturing of electric vehicles. These include platinum (70%), cobalt (52%), manganese (46%), bauxite (25%), and graphite (21%).
2. Renewable Energy Potential:
   • Africa boasts the largest reserves of renewable energy sources worldwide, particularly in hydro and solar power. Notably, Morocco is home to the Noor Ouarzazate, the world’s largest concentrated solar zone.
3. Global Players in the EV Market:
   • China, the United States, and Europe currently lead the global electric vehicle market. China, for instance, has made substantial investments in EV infrastructure and manufacturing, spurred by incentives like subsidies, tax breaks, and license plate restrictions.
4. Prominence of the United States:
   • The U.S. holds a significant position in the global EV market. Incentives such as tax credits and rebates, coupled with a presence of established automakers and innovative startups, have propelled EV sales.
5. Europe’s Growing Role:
   • Europe has emerged as a major player in the global EV market. Countries like Norway, Germany, France, and the Netherlands have witnessed substantial growth in EV adoption, driven by government support and an expanding charging infrastructure.
6. African Cost Advantage in Battery Manufacturing:
   • Adesina cited an assessment indicating that Africa enjoys a significant cost advantage in the manufacturing of lithium-ion precursor batteries. The cost in Africa is three times less than in the U.S., China, and Poland.
7. The Desert-to-Power Project:
   • The African Development Bank and its partners are spearheading the $20 billion Desert-to-Power project spanning 11 Sahel zone countries. Once completed, this project will constitute the largest solar zone globally.

Conclusion: Africa stands at the threshold of a transformative opportunity in the electric vehicle market. The continent’s rich reserves of essential green metals and renewable energy potential position it as a key player in the projected $57 trillion market by 2050. With strategic initiatives like the Desert-to-Power project, Africa is poised to harness its immense potential in contributing to the global shift towards electric mobility. As the world embraces this sustainable revolution, Africa’s role becomes increasingly vital in shaping the future of transportation and energy.

BD