AS the world looks to transition to a low-carbon energy future, the development of renewable energy technologies is becoming increasingly crucial. Critical minerals such as aluminum, chromium, cobalt, copper, graphite, manganese, and platinum are essential components in the production of renewable energy technologies, including solar panels, wind turbines, green hydrogen, electric vehicles (EVs), and battery storage. Africa’s rich mineral wealth has the potential to not only benefit the continent but provide a foundation for the global energy transition.
According to a report by Energy Capital & Power, aluminum is a crucial component in most low-carbon technologies, accounting for more than 85 percent of most solar photovoltaic components. Africa is home to nearly one-third of global bauxite reserves, with Guinea alone accounting for over half of global aluminum ore exports in 2020.
Chromium, another critical mineral, accounts for more than a third of the mineral demand for both geothermal and
hydropower technologies and serves as a requisite material for the development of concentrated solar power (CSP). South Africa accounted for nearly 45 percent of the world’s chromium production in 2021, while Africa accounted for over 80 percent of global chromium ore exports in 2020. According to the International Energy Agency (IEA), chromium demand is expected to triple by 2030.
Cobalt, an essential mineral for the production of lithium-ion batteries used in EVs and energy storage technologies, is expected to see a six-fold rise in global demand by 2040, with the majority located in the Democratic Republic of Congo (DRC) and Zambia. Additionally, Zambia and the DRC are world-leading producers of copper, used in renewable energy systems to generate power from solar, hydro, thermal, and wind energy. In 2021, the DRC mined the third-largest amount of copper globally, while Zambia currently accounts for over 12% of global production.
Madagascar, Mozambique, and Tanzania’s combined graphite reserves account for more than one-fifth of the world’s reserves and will play a central role in the development of lithium-ion batteries. Manganese, another critical mineral, accounts for over a quarter of mineral demand for CSP development and is expected to see demand increase three-fold by 2030, according to the IEA. More than 60 percent of global manganese production occurs in Africa, with Cote d’Ivoire, Gabon, Ghana, and South Africa all producing the critical mineral, with the latter serving as the world’s largest producer.
PGM minerals, including iridium, palladium, and platinum, are ideal metals for catalysts in proton exchange membrane fuel-cell technologies, crucial in the development of green hydrogen and decarbonization of sectors such as heavy transport, heating, and industry. South Africa accounted for over 70 percent of global platinum production between 2016 and 2020, and over 80% of global iridium production, while Zimbabwe serves as the world’s third-largest producer of platinum and second-largest producer of iridium.
The competition for access to Africa’s critical minerals is expected to grow exponential
ly in the coming decades as the world transitions to a low-carbon energy future, with the world’s largest economies, China and the US, vying for strategic control over global critical mineral supply chains. This competition places Africa at the heart of the global energy transition.
The nexus between the global energy transition and Africa’s critical minerals will be further discussed at the African Critical Minerals Summit scheduled for November in Johannesburg. The conference is organised by African investment promotion and events producer Energy Capital & Power.
