AFRICA stands on the brink of establishing its first cobalt sulphate refinery by the close of 2025, a significant milestone in the continent’s efforts to diversify its industrial capabilities. The refinery, poised to be one of the few outside China with the capacity to produce this crucial component of lithium-ion batteries, is spearheaded by Nigeria-based Africa Finance Corp. (AFC).
Last week, AFC inked an expression of interest to provide $100 million in financing to Kobaloni Energy, a venture supported by mining veteran Mick Davis’ Vision Blue, for the proposed refinery in Zambia, Bloomberg reported. AFC’s Chief Executive Officer, Samaila Zubairu, indicated in a February 9 interview that an investment decision is expected within 3-4 months. Once finalised, production could commence within 18 months, according to Johnny Velloza, Kobaloni’s co-founder.
The project holds promise in diversifying a pivotal segment of the global battery manufacturing supply chain away from China, which currently dominates about 75 percent of global cobalt refining capacity. Although Zambia itself isn’t a major cobalt producer, its northern neighbour, the Democratic Republic of Congo, accounts for approximately two-thirds of the world’s cobalt supply.
Despite the strategic importance of cobalt, prices have witnessed a sharp decline from highs exceeding $80,000 a ton two years ago to approximately $28,000 on the London Metal Exchange, primarily due to oversupply. Nevertheless, investments in cobalt remain crucial for the develo
pment of susta
inable battery technologies and the electrification of various industries.
