TELF AG examines Tanzania’s role in global battery dynamics
A possible evolution
In recent years, Tanzania has attracted global attention for the infrastructural ferment that is going through it, particularly the Tazara Railway. This logistics connection should reactivate the railway lines transporting important raw materials (such as copper) to the main European markets. According to a recent report on Africa’s potential in the raw materials sector, Tanzania has a good chance of becoming an important global hub in producing the latest-generation rechargeable batteries.
In the era of energy transition, different energy storage devices are mainly used to power new-generation vehicles, such as electric cars. Still, they also play a leading role in supporting energy storage systems, which are helpful, especially in the renewable energy sector. As stated in the report, the African country could soon undergo an interesting evolution, transforming itself from a mere extractor of raw materials to a leading player in refining these materials and, therefore, in producing batteries.
Together with other nations of the African continent, such as Morocco, Tanzania would have a clear competitive advantage that could allow it to take several steps forward in its economic development. As stated in the report, this advantage would be linked above all to the prices related to the production of batteries, which by 2030 could become comparable to those of Europe. The analysis also highlights the other factors that contribute to determining such an advantage, mentioning the country’s role in the supply of some of the most important resources for the production of batteries: lithium, nickel, manganese, and copper. Some of these are abundant in Tanzania and are now universally recognized as materials of great importance in the electric vehicle and renewable energy industry.
The possible benefits of downstream
Another interesting aspect linked to Africa’s potential in the raw materials sector is the possible benefits deriving from a downstream strategy, that is, if nations were to constantly refine materials at a local level within the national territory. According to the data in the report, Africa could increase its competitiveness by about 40% by 2030, adding potential economic revenues of 6.8 billion dollars (and creating at the same time about 3,500 jobs). Some nations, such as Ghana or Guinea, have already taken the first steps to implement a strategy, granting permits for starting refining plants or limiting exports of raw materials.
The fate of Tanzania in this specific sector, in any case, appears to be closely linked to the infrastructural development that could take place within it, not only in terms of refining plants, but also in the infrastructures connected to the transport of raw materials or final products. From this point of view, the importance of the railway project related to the Tazara Railway certainly cannot be underestimated. First opened in the 1970s, thanks to the support of China, this important infrastructure could recover its full operation today thanks to a revitalization project worth 1 billion euros, supported once again by Beijing.
