Can the Democratic Republic of Congo transform its cobalt sector?

The Democratic Republic of Congo (DRC) is a significant player in the global cobalt market, supplying about 70% of the world's cobalt used in the production of batteries for electric vehicles. However, despite its vast resources, the country captures only 3% of the global battery and electric vehicle value. This disparity has prompted discussions on how the DRC can leverage its cobalt sector to maximize its potential as a key player in the battery value chain. The upcoming DRC-Africa Business Forum aims to be a turning point in this journey. Antonio Pedro, the Deputy Executive Secretary at the Economic Commission for Africa, highlighted the forum's objectives of mobilizing businesses to invest in the battery and electric vehicle value chain in the DRC. The DRC currently operates at the lower end of the value chain, predominantly in the mining sector, which limits its ability to capture a larger share of the market. Pedro emphasized the importance of moving up the value chain to the battery precursor's segment, which is projected to be worth $271 billion annually by 2025. This shift could potentially increase wealth retention and job creation within the country, as exporting raw materials often results in the loss of economic opportunities. Pedro underscored the significance of transitioning to cleaner energy sources, noting the global shift towards renewable energy as a critical factor driving the demand for battery minerals like cobalt. With the net zero era on the horizon, where fossil fuels are being phased out in favor of cleaner alternatives, the DRC has a prime opportunity to capitalize on its resources and position itself as a competitive investment destination for battery precursor production. In addition to its abundance of cobalt, the DRC also boasts reserves of lithium and clean energy sources, aligning with the requirements for sustainable and environmentally friendly production systems. The upcoming forum is not only focused on the DRC but aims to engage regional players across Africa to participate in the battery value chain. Manganese from Ghana or South Africa, nickel from Madagascar, and graphite from other sources will be essential components in the regional production of battery cells. Furthermore, with the African Continental Free Trade Area in place, the forum seeks to enhance integration within the continent and facilitate the production and distribution of electric vehicles within Africa. By fostering collaboration and investment in the battery value chain, the DRC and other resource-rich African nations can collectively drive growth and innovation in the sector, contributing to the continent's economic development. The DRC-Africa Business Forum serves as a platform to showcase the untapped potential of the DRC's cobalt sector and the broader opportunities for sustainable development and economic prosperity in Africa. As global industries increasingly pivot towards cleaner energy solutions, the timing is optimal for the DRC to reposition itself within the battery value chain and harness its resources for long-term growth and competitiveness.