How are the panic sellers feeling? Ended up buying back higher...

How are the panic sellers feeling? Ended up buying back higher out of FOMO?

*Probably Sick after Selling, but Excited after they read the report, titled

“The Cost of Producing Battery Precursors in the DRC”


Producing battery materials in the DRC

A new study by BloombergNEF on a unified African supply chain has identified The Democratic of Congo (DRC) as a favourable destination for the manufacturing of sustainable battery materials used in high-nickel batteries.

It says the DRC can leverage its abundant cobalt resources and hydroelectric power to become a “low cost and low emissions producer of lithium-ion battery cathode precursor materials.”

The report, titled “The Cost of Producing Battery Precursors in the DRC” goes on to say that the emissions associated with battery production could be cut by 30% compared with the existing supply chain that runs through China, if cathode precursor materials (such as NCA and NMC) were produced in the DRC, with Poland handling the production of cathode materials and cells, and Germany the final pack assembly.

The DRC’s cost competitiveness comes from its relatively cheap access to land and low engineering, procurement and construction or EPC cost compared to the US, Poland, and China, the lead author of the report and BNEF’s head of metals and mining Kwasi Ampofo said.

“European cell manufacturers currently rely heavily on China for battery precursors,” Ampofo said.

“However, the raw materials for batteries are, in most cases, imported into China from Africa and refined before being exported to Europe.

“Automakers in Europe can lower their emissions by shortening the transport distance and capitalising on the DRC’s hydroelectric powered grid and proximity to raw materials.”

The sheer scale of growth expected in the coming decades means that there is inherent uncertainty over which companies and countries may come to dominate this new value chain, he said.

“African countries could play a major role in the lithium-ion battery supply chain by taking advantage of their abundant natural resources and onshoring more of the value chain.”

James Firth, head of energy storage at BNEF, says for regions to to attract battery component or cell manufacturing they need to have either a supply of key materials or local demand for batteries.

“If they have access to raw materials, they can use this supply to attract downstream manufacturers,” he said.

“If they have local demand for batteries, cell manufacturers will move to the region to be close to their customers, particularly in the automotive industry.

“Africa has a wealth of critical battery raw materials and is in a position to use these to attract more value-add in downstream processing and manufacturing.”




*To remind,

Several senior African leaders called for “turning the dream into reality” at the African battery and electric vehicle business forum.





Worth reading the report from BNEF.

https://assets.bbhub.io/professiona...ucing-Battery-Precursors-in-the-DRC_FINAL.pdf


Electric vehicles are a revolution and a unique opportunity for Africa to transform its natural resources into sustainable prosperity for all.

Let’s accelerate and turn this dream into reality!

Which in itself would be a great revolution.

Let’s step on the pedals!