UK Recognises Morocco’s Ability to Produce Batteries at Competitive Prices with Europe

  • UK Foreign Secretary David Lammy has unveiled a report highlighting Africa’s potential in the global battery supply chain and the promising investment opportunities within its battery manufacturing sector.
  • The report noted that “global demand for batteries is expected to hit 7.8 terawatt-hours by 2035, with China, the United States, and Europe accounting for about 80 per cent of that demand.

UK Foreign Secretary David Lammy has unveiled a report highlighting Africa’s potential in the global battery supply chain and the promising investment opportunities within its battery manufacturing sector at a renewable energy conference in Lagos, Nigeria.

He stated, “Some African countries, like Morocco and Tanzania, have the capacity to produce batteries at costs competitive with Europe.”

He pointed out that “production costs in Morocco, for example, are around $72 per kilowatt-hour, while in Tanzania they can be as low as $68—almost on par with Europe’s $68 per kilowatt-hour,” adding that “these numbers highlight Africa’s potential to emerge as a global hub in the battery supply chain.”

The report, titled “From Minerals to Manufacturing: Africa’s Competitiveness in Global Battery Supply Chains,” noted that “Morocco’s political stability, geographic location, duty-free export access to the EU and US, and its reserves of key battery raw materials position the kingdom as a leading hub for battery manufacturing in Africa.”

The source added that “Morocco is the only country producing the cathode materials needed for battery manufacturing. As a result, any factory will have to import these materials either from Morocco or other producers like China,” emphasizing that Morocco is one of 21 African countries given priority in battery manufacturing.

The report noted that “global demand for batteries is expected to hit 7.8 terawatt-hours by 2035, with China, the United States, and Europe accounting for about 80 per cent of that demand, while lithium-ion batteries are projected to account for roughly 80 per cent of the total global demand in this sector.”

By this year, the same source added that “regional markets will face an imbalance, with a large surplus in China and a shortage in the United States, Europe, and the rest of the world. As global economic growth slows, the European Union will aim to reduce its reliance on China, creating opportunities in Africa for materials used in battery manufacturing.”

It emphasised that “Africa’s access to raw materials puts it in a strong position to enter the battery manufacturing sector,” adding, “to reach the required scale of 10 to 15 gigawatt-hours, Africa must target global demand, serve markets like the United States and the European Union, and expand its sources beyond China.”

The UK Foreign Office highlighted that “the African Continental Free Trade Area presents a unique opportunity for African nations to collaborate across the value chain and boost cost competitiveness,” noting that “by 2030, African countries could become cost-competitive in refining raw materials, benefiting from access to mines, low-cost electricity, and inexpensive labour. African refineries could outperform their global counterparts in key materials, especially lithium, nickel, copper, and manganese.”

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