POLICY CONSIDERATIONS FOR MINING LITHIUM IN AFRICA

INTRODUCTION

Reports reveal that Elon Musk, Tesla's CEO and co-founder, may visit Ghana soon as part of advanced plans to mine lithium in the nation.[i] According to Dickson Adomako Kissi, Member of Parliament for Anyaa Sowutuom, it is not surprising that the billionaire investor will visit Ghana soon, due to the importance of lithium to the company's operations.[ii] The parliament member urged the government to ensure bonding with societies related to lithium and also called for measures to add value to the raw materials mined locally.

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LITHIUM MINING IN AFRICA

The International Energy Agency?projects that manufacturers of clean energy technologies will need forty times more lithium, twenty-five times more graphite, and about twenty times more nickel and cobalt in 2040 than in 2020.[iii] Called the "white gold" of the?renewable energy?revolution, lithium is a key component of the rechargeable lithium-ion batteries that power everything from cellphones to electric cars. Such batteries are also vital for storing energy produced by clean energy like solar or wind, if the world is to make the break from fossil fuels.[iv]

Globally,?lithium supply?is currently dominated by Australia, Chile and China, who together produced 90% of the light metal?in 2022.[v] But with about 5% of the world's lithium ore reserves, Africa still holds enormous potential, most of which remains untapped. Currently only Zimbabwe and Namibia export?lithium ore, while projects in nations such as Congo,?Mali,?Ghana,?Nigeria,?Rwanda?and?Ethiopia?are under exploration or development.[vi] This presents a significant opportunity for African nations to contribute to the increasing global demand for lithium, while fostering economic growth.?One of the primary drivers of lithium demand is the rapid growth of the electric vehicles (EVs) market. The adoption of EVs has gained momentum in countries that strive to reduce carbon emissions and combat climate change, leading to higher demand for lithium.?

Lithium is an important component in building a sustainable society; as lithium-ion batteries are a key technology for electric vehicles and storing renewable energy from sources like solar and wind power.[vii] These in turn provide clean and reliable energy to communities. The lithium mining industry could also create job opportunities and boost local economies in regions where mining operations are established.?This growth may spread to other sectors, such as transportation, construction, and services, as demand for products and services rises to support mining operations and their personnel.[viii] Companies frequently engage in infrastructure improvements to assist mining activities, such as highways, electrical supplies, and communication networks. These enhancements have the potential to benefit the whole community and attract more investment.

Africa currently has very little capacity for processing lithium minerals, further refining lithium chemicals, or manufacturing battery components. This typically results in mineral concentrate being exported; hence, value is added outside of Africa, and products utilising lithium-ion batteries are subsequently imported.[ix] Thus, it is considered a step in the right direction when an Africa country like Ghana is willing to mine the lithium resource.

However, mining is not seen as a friendly activity, due to the negative effects such as pollution, disruptions of wildlife causing erosion and long-term ecological damage.[x] However, if done properly, it can be more environmentally friendly and sustainable. Innovations in technology and responsible mining practices can help reduce its negative impact on the environment, making it a more viable option for resource extraction, while preserving ecosystems.[xi]??This has brought about the clamor for more ecological friendly resources like the sodium-ion batteries as opposed to lithium based batteries.

Lithium-ion batteries for EVs are either nickel-based – using lithium nickel manganese cobalt oxide (NMC) and nickel cobalt aluminium oxide (NCA) or lithium iron phosphate (LFP).[xii] Surging lithium prices also prompted battery makers to look at alternative technologies, including sodium-ion, in order to meet rising demand for EV batteries. It is expected that the lower cost, improved safety and supply chain advantages of sodium-ion batteries over lithium-ion batteries will continue to drive their technology towards mass production.[xiii] The potential success of sodium-ion batteries would however, depend on how quickly battery manufacturers could scale up to commercialize the new technology and integrate this into the current manufacturing processes. Moves towards mass production of sodium-ion batteries are still in their infancy, and dependent on further research and development.

Sodium-ion batteries are not expected to overtake lithium-ion batteries in the short to medium term, but sodium-based batteries have the potential to complement lithium-based batteries, reduce dependence on a single material, and alleviate some of the pressure on lithium and battery material supply chains.[xiv] This should all accelerate the green energy transition; in which countries should start taking full cognizance of, to manage the rush for lithium and the need for its mining.

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POLICY CONSIDERATIONS FOR LITHIUM MINING IN AFRICA

Mining lithium in African countries should be accompanied with? several policy considerations including but not limited to[xv]:

·???????? Environmental Impacts: Mineral processing has a substantially bigger environmental effect (in terms of greenhouse gas emissions), according to life-cycle studies. This is primarily owing to the high energy requirements and intensive usage of chemicals. The usage of renewable energy rather than fossil fuels can have a substantial influence on overall evaluation. Also, there should be a preparation for the recycling and repurposing of lithium-ion batteries, as there are currently no lithium-ion battery recycling facilities operating in Africa, which makes environmentally sound recycling very costly.

·???????? Joint Ventures: African nations could use their considerable resources to form strategic alliances with big battery customers such as Samsung, Tesla, and LG. States should encourage local entrepreneurs to develop joint ventures with well-established companies. To support the growth of the full value chain, miners in industrialized nations are increasingly creating joint ventures or developing offtake arrangements.

·???????? Investment promotion strategies: The ideal next step is to foster an environment that encourages open and transparent investment. African countries with mineral resources should implement policies that encourage value chain development, such as providing incentives to companies that consider investing and participating in ?the value chain.

·???????? Linkages between the framework and the economy: African nations must create mechanisms that support economic growth, beginning with good governance. Major state institutional roles that encourage value chain growth include national economic (and monetary) policy, infrastructure and logistics development, transparency, education, and communication. If any of these state functions fails, the pillars for lithium mining fail likewise.

·???????? Studies on the feasibility of establishing an African battery manufacturing value chain: According to recent discoveries, Africa has all the elements needed to produce the different chemical components of lithium ion batteries. A feasibility study should be undertaken to examine the country's readiness and how it may profit from the various components of the value chain: raw materials, refining, battery assembly, etc. The preparedness of each country will be evaluated based on characteristics such as innovation, capital raising, manufacturing, energy resource availability, governance, etc.? The research will subsequently identify nations that have already created capability in these areas, in addition to what other countries may do to improve capacity and preparedness.

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CONCLUSION

It has been proven that mining alone can only realize 10% of the value of the mineral commodity, implying countries are losing potential revenue equivalent to 90% of the value of the commodity. African countries can take advantage of the resource abundance in the continent, but in doing so, should factor the highlighted policy considerations, amongst others; to optimize the mining process of lithium and beyond.

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[i] Elon Musk May Visit Ghana for Lithium Mining < https://theelectricityhub.com/elon-musk-may-visit-ghana-for-lithium-mining/? > accessed 15 December 2023

[ii] Ibid

[iii] AFDB,? Rich in green minerals, African countries eye booming electric vehicle and clean energy market worth trillions of dollars < https://www.afdb.org/en/news-and-events/rich-green-minerals-african-countries-eye-booming-electric-vehicle-and-clean-energy-market-worth-trillions-dollars-65241? >

[iv] Lithium Mining in Africa Reveals Dark Side < https://www.dw.com/en/lithium-mining-in-africa-reveals-dark-side-of-green-energy/a-67413188? >

[v] ibid

[vi] Ibid

[vii] Can Sodium Ion Battery replace Lithium < https://think.ing.com/articles/can-sodium-ion-batteries-replace-lithium-ion-batteries? >

[viii] Ibid

[ix] Kathryn Goodenough, Eimear Deady and Richard Shaw, Lithium resources, and their potential to support battery supply chains, in Africa. Available at https://nora.nerc.ac.uk/id/eprint/530698/1/Lithium_in_Africa_Report.pdf

[x] Ibid

[xi] Can Sodium Ion Battery replace Lithium < https://think.ing.com/articles/can-sodium-ion-batteries-replace-lithium-ion-batteries? >

[xii] Ibid

[xiii] Ibid

[xiv] Ibid

[xv] Lithium-Cobalt Value Chain Analysis for Mineral Based Industrialization in Africa < https://africa-energy-portal.org/sites/default/files/2022-02/lithium-cobalt_value_chain_analysis_for_mineral_based_industrialization_in_africa_report.pdf >