Japan Builds Supply Chain for EV Battery Minerals in Africa

Via Nikkei Asia, a report that Zambia, DR Congo, and Namibia are in advanced negotiations with the Japanese government to expand exploration and develop supply chains for rare minerals, including cobalt, copper, zinc, nickel, and lithium available in the three countries. Japan is moving to counter Chinese influence in the continent’s mining industry and diversify its mineral sources to enhance economic security.

Japan’s government plans to work with three African nations to develop supply chains for cobalt and other minerals critical in making electric vehicle batteries, Nikkei has learned.

Tokyo will team with Zambia, the Democratic Republic of Congo and Namibia to expand joint exploration in each country. The projects are due to start as soon as within the year.

Japan looks to diversify its sources of critical minerals, including lithium, in order to enhance economic security and counter China’s growing investment in African countries.

The Japan Organization for Metals and Energy Security, the state-owned resource explorer known as JOGMEC, intends to sign a memorandum of understanding with Zambia soon. JOGMEC also will finalize work plans with Congo and Namibia based on preliminary agreements already reached with the two countries.

Yasutoshi Nishimura, Japan’s minister for economy, trade and industry, said Tuesday that he will visit the three countries, along with Angola and Madagascar, during his eight-day tour of Africa that will end Aug. 13. The signing of the memorandum of understanding and other agreements will coincide with the itinerary.

Though JOGMEC is active in Zambia, Congo and Namibia, no private-sector Japanese company has entered any of those countries to develop mining projects for critical minerals due to various risks and the large amount of capital required. A government-led effort to develop resources is seen helping draw private investment.

Japan and Zambia will begin to explore the entirety of the African country, expanding the scope of the search from cobalt and copper to include nickel. Through JOGMEC, Japan will provide remote sensing technology to identify potential mining sites using satellite imagery.

Tokyo will hold a conference with private businesses to address mining investment. Japanese companies such as Nissan Motor and trading house Hanwa are expected to attend.

In Congo, copper and lithium will be the targets of expanded exploration. A remote sensing center is being built in the country with support from the Japan International Cooperation Agency. JOGMEC will be among those to help train people locally in the technology.

For Namibia, Japan will agree to a work plan with Epangelo, Namibia’s state-owned mining company, looking to reinforce the supply chain for rare earths and other minerals.

Though Namibia is rich in zinc, copper and other resources, its supply chain remains underdeveloped. Yet Namibia has a large port that places the country in the running to be a major African export hub.

Japan seeks to become involved in developing African mines at an early stage with the goal of importing resources from the region. Tokyo will deepen relations with the three countries with an eye toward building an African supply chain capable of extracting, refining and transporting critical minerals.

Demand is growing for minerals such as cobalt and nickel, used to make electric vehicle batteries. Congo is responsible for 70% of the global supply of cobalt by volume. Africa is a major source of copper as well.

Chinese enterprises have invested heavily in Africa, especially in Congo. As a result, China has quickly expanded its market share in processing critical EV minerals.

If China restricts exports in response to tensions with the U.S., it would impede efforts by Japan and Western nations to bring EVs into the mainstream and reduce carbon emissions.

Japan and other Group of Seven industrial nations depend heavily on China and a few other countries for imports of critical minerals. During the group’s May summit in Hiroshima, G7 leaders agreed in the joint communique to work with developing nations to diversify the supply chain for critical minerals.



This entry was posted on Thursday, August 3rd, 2023 at 2:32 am and is filed under Democratic Republic of Congo, Namibia, Zambia.  You can follow any responses to this entry through the RSS 2.0 feed.  Both comments and pings are currently closed. 

Comments are closed.


ABOUT
WILDCATS AND BLACK SHEEP
Wildcats & Black Sheep is a personal interest blog dedicated to the identification and evaluation of maverick investment opportunities arising in frontier - and, what some may consider to be, “rogue” or “black sheep” - markets around the world.

Focusing primarily on The New Seven Sisters - the largely state owned petroleum companies from the emerging world that have become key players in the oil & gas industry as identified by Carola Hoyos, Chief Energy Correspondent for The Financial Times - but spanning other nascent opportunities around the globe that may hold potential in the years ahead, Wildcats & Black Sheep is a place for the adventurous to contemplate & evaluate the emerging markets of tomorrow.