African Countries Urged to Harness Opportunities in Battery, EV Sector

Addis Ababa, April 17/2024 (ENA) - The United Nations Economic Commission for Africa (UNECA) has called on African countries to harness the opportunities presented in recent developments in the global battery and electric vehicle (EV) industry.

The UNECA made the call as it held a technical review meeting on the implementation of a cross-border special economic zone for the battery and EV industry, which will be established in the Democratic Republic of the Congo (DRC) and Zambia, with the support of the UNECA and the African Export-Import Bank.

Director of the UNECA Sub-Regional Office for Southern Africa, Eunice Kamwendo said the initiative will add value to the minerals crucial to manufacturing EVs, attract domestic and foreign direct investment in the sector, create sustainable jobs, and contribute to overall economic transformation.

The planned joint special economic zone will promote manufacturing agglomeration in the two countries and across the continent, while also bridging the technological gap in the sector, Kamwendo said.

"This initiative presents an immense opportunity for transforming regional economies and the entire continent through mineral-based development," she said.

With a shift from internal combustion to electric vehicles, the battery electric vehicle market is poised to grow to US$8.8 trillion by next year, 2025, and US$46 trillion by 2050 — a nearly six-fold increase in market value over the next 25 years.

The UNECA said the surge in demand for rechargeable batteries, driven by smartphone use and the need to store renewable energy, represents a huge opportunity for the African continent to drive development based on a clean energy transition.