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Author – Luke Peters , manager , Valuations - Deloitte UK | Co-author – Neil McKenna , director , Deloitte Technical Mining Advisory

Battery-associated materials , namely bauxite ( a precursor to aluminium ), cobalt , copper , graphite , lithium , nickel , platinum group metals ( PGMs ), rare-earth elements ( REEs ) and vanadium are among the materials pivotal to the global shift to a lowcarbon economy .

Batteries have undeniably become the principal method to decarbonise the transport sector , through their application in electric vehicles ( EVs ). According to the IEA ’ s Global EV Outlook 2022 , battery demand is expected to grow by about 30 % per year , from 2023 to 2030 . This is largely due to a long-term increase in EV sales and policies in favour of reducing the use of internal combustion engine ( ICE ) vehicles . EV sales are expected to be driven by a reduction in prices and raw material costs ( Lithium and Cobalt CBS February 2023 , S & P Global ).

While geopolitical instability may drive down production , and while inflation may place pressure on the fabrication supply chain in the near term , raw material supply , battery production capacity and demand for EVs is expected to continue to grow . In addition , diverse battery chemistries are being used with increasing success , which is continuously changing supplydemand dynamics for some battery metals , with the potential to redirect focus on the development of projects in this space . With a greater appetite for near-term market risk , and more operational flexibility , junior miners play a vital role in the establishment and expansion of the battery metals supply chain in Africa . This is not hard to imagine , given that most of the key battery metals projects within Africa are being developed or operated by juniors .

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capitalise on bringing this new and established supply to the market through discovery , resource development and expansion plans . Furthermore , there is opportunity for the development of downstream industrial sectors , which would likely have a more sustainable long-term outcome for producing nations . Southern Africa is particularly well-placed to position to supply these metals for a growing market .

M & A of African resources highlights growing demand for battery metals According to research by S & P Global , since 2019 , 25 mineral projects have been acquired throughout the continent , each at varying stages of development , highlighting the recent interest in the battery metals supply chain . Unsurprisingly , lithium – a well-established battery metal – has been at the forefront of

Both photos supplied by Deloitte

Africa holds considerable resources and is already a significant producer of key battery metals , including a primary source of cobalt from the Democratic Republic of the Congo ( DRC ), manganese from South Africa , and lithium from Zimbabwe . With known world-class deposits , and growing global demand for these commodities , resourcerich parts of Africa are well-positioned to

Number of battery metal resource transactions across Africa .

Source : S & P Global , accessed 2023 www . africanmining . co . za African Mining Publication African Mining African Mining • June 2023 • 35