Zambia and DRC’s Role in the Battery Industry and Africa’s Renewable Energy Transition
Africa holds 30% of the world’s critical mineral reserves, including rare earth elements, cobalt, and lithium, positioning the continent as a key player in the global energy transition. The Democratic Republic of Congo (DRC) alone accounts for 70% of the world’s cobalt supply, while Zambia possesses significant reserves of copper, manganese, and nickel. These resources present both challenges and opportunitiesparticularly in Africa’s ability to move beyond mineral extraction and develop value-added midstream and downstream industries.
Opportunities and Challenges for a Regional Battery Industry
One way to capitalise on these resources is through battery manufacturing. The DRC and Zambia have already established a Transboundary Battery and Electric Vehicle Industry Special Economic Zone, aiming to move up the value chain by producing finished battery products essential for the global clean energy transition.
Localising battery manufacturing can drive greater beneficiation, ensuring that more value is retained within Africa. The development of electric vehicle (EV) batteries could support the continent’s low-carbon transition, particularly in the public transport sector. Additionally, advancements in battery technology could enhance renewable energy access across the region. To facilitate this, both countries can leverage trade agreements such as the African Continental Free Trade Area (AfCFTA) to promote the regional exchange of processed battery materials.
However, significant barriers remain. The regional market is limited, and competition exists from other African nations such as Gabon, Zimbabwe, and Tanzania, as well as South Africa, which also have ambitions in battery production. Many of these countries have already established bilateral agreements and private-sector investments with major international importers like the EU, US, China, and Japan. Other challenges include financing gaps, weak grid infrastructure, and policy uncertainty. To scale up the battery sector, innovative financing models, stronger public-private partnerships, and clear regulatory frameworks will be essential to ensure energy equity and long-term sustainability.
South Africa’s Role in Developing the Regional Battery Industry
As a regional economic powerhouse and a gateway for investment into Southern Africa, South Africa can play a crucial role in supporting the DRC and Zambia’s battery industry. With a well-established industrial and financial sector, as well as world-class research institutions, South Africa is well positioned to attract venture capital and green finance for infrastructure development, industrial projects, and start-ups.
Currently, more than 60% of Sub-Saharan Africa’s renewable energy capacity, including battery storage and manufacturing, is concentrated in South Africa. The country has also secured approximately $8.5 billion in financing from the Just Energy Transition Partnership (JETP) to support its clean energy transition. This investment could help facilitate the expansion of battery manufacturing and storage solutions across the region.
Strategic Steps Moving Forward
To strengthen their battery industry, the DRC and Zambia should continue to build strategic partnerships with key international players, including the US, China, the EU, and Japan. A potential tripartite agreement with South Africa could further enhance local value addition and ensure the growth of homegrown companies.
Additionally, establishing innovation and incubation hubsfocused on clean energy manufacturing can help develop critical technical skills, fostering a new generation of engineers, technicians, and entrepreneurs. Collaborating with private sector players such as Haval, Toyota, and BVM, which are expanding into the EV market, could also increase demand for African-made batteries.
Lastly, strengthening regional energy infrastructure such as expanding the Southern African Power Pool (SAPP) can improve battery storage solutions, stabilising the region’s renewable energy grid and enhancing energy security.
Author: Kennedy Simango
Research Analyst
