Africa set to have continent's first cobalt refinery by end of 2025
TLDR
- Africa close to establishing first cobalt sulfate refinery for lithium-ion battery supply chain
- Nigeria's Africa Finance Corporation spearheading project
- Financing secured could lead to refinery production within 18 months
Africa is moving closer to establishing its first cobalt sulfate refinery, a critical development for the continent's lithium-ion battery supply chain. Expected to be operational by the end of 2025, this refinery will be among the few outside of China capable of producing this key component.
The project is spearheaded by Nigeria-based Africa Finance Corporation (AFC), which recently signed an expression of interest to provide $100 million in financing to Kobaloni Energy, backed by mining expert Mick Davis' Vision Blue, for the construction of the refinery in Zambia.
Samaila Zubairu, CEO of AFC, stated in an interview on February 9th that the investment decision is expected within 3-4 months. Once financing is secured, production at the refinery could commence within 18 months, according to Johnny Velloza, co-founder of Kobaloni, in a text message on Wednesday.
Key Takeaways
The establishment of the cobalt sulfate refinery in Zambia represents a significant step towards diversifying a vital segment of the global battery manufacturing supply chain away from China. Currently, China dominates around 75% of global cobalt refining capacity. While Zambia itself is not a major cobalt producer, its northern neighbor, the Democratic Republic of Congo, accounts for around two-thirds of the world's cobalt supply. However, despite the significant cobalt resources in the region, prices have experienced a sharp decline in recent years. From highs surpassing $80,000 a ton two years ago, cobalt prices have plummeted to around $28,000 per ton on the London Metal Exchange. This drop is primarily attributed to oversupply in the market, posing challenges for investments in the metal. Nonetheless, establishing a cobalt sulfate refinery in Zambia could potentially help stabilize prices and create new opportunities in the cobalt market.
Think someone else should see this?
To invest in this opportunity and other opportunities across Africa
Download the daba finance app on your mobile through
Take action.
Download app
Start investing in Africa’s best opportunities, including stocks, bonds, startups, venture funds, and more.
Partner with us
Unlock exciting business opportunities and growth potential.
Join Daba
Become a part of our vibrant community and enjoy exclusive benefits.
Contact us
Reach out to us for inquiries, support, or collaboration.