Speaking at the Democratic Republic of Congo - Africa Battery Metals Forum, Paul Chanda Kabuswe, Zambia's Minister of Mines, said: "We have to stop exports... ... We have to move up the value chain to the last link to benefit the people who live where the minerals are located."
"A new 'scramble for Africa' is under way," Kabuswe said. During the colonial period, European countries carved up the African continent. Today, many companies and countries are signing treaties and partnerships with the African continent. It is time for the Africans to start negotiating properly."
Today, Congo produces about two-thirds of the world's cobalt. Most of the cobalt is exported unprocessed, mainly for batteries. Zambia also produces cobalt, which is important for the energy transition.
In November 2021, the two heads of state expressed their intention to process raw materials locally. As a first step, they want to establish a special economic zone to convert raw materials into primary products in the battery supply chain.
Vuko Ndondo Kakule, deputy executive director of the Congo Battery Commission, has even more ambitious plans.
"DRC has set a goal to become one of the world's largest producers of batteries by around 2030 or 2040," he said.
At the same conference, there was also talk of Congo becoming a producer of electric vehicles in the future.
As Congo tries to challenge the business model of exporting raw materials, stakeholders from industrialized countries are watching closely.
On the stage of the Battery Metal Forum, sitting the ambassador of the United States, the United States has issued a statement of intent in support of SEZs. A representative of the European Union and business leaders from Canada and China also participated in the discussions.
Marie-Chantal Kaninda, country manager at Swiss commodities giant Glencore, says mining raw materials is one thing, but refining metals is much more difficult. Glencore mines cobalt in southern Congo and can also produce the metal.
"But at this stage, demand must also be taken into account," Kaninda said. If the product does not find a buyer, then the country will not benefit. At the moment it is worthwhile to produce cobalt hydroxide, the powder is easy to transport."
"In addition to cobalt, lithium, nickel and manganese are needed to produce basic batteries. The main products Congo is considering already contain all of these raw materials. The country has resources, but they are not being exploited."
"This means that other countries will have to temporarily supply the planned SEZs. BloombergNEF cited Gabon, Madagascar, Zimbabwe and other African countries.
According to a publication by the institute, building a factory in Congo to produce battery precursors costs only a third of the cost of similar plants in China or the United States. Compared with Poland, the cost is slightly less than two thirds. A preliminary feasibility study for the project has begun.
Jean Pierre Okenda, a Congolese lawyer and country director of Resource Matters, sees many unanswered questions. Feasibility studies and domestic raw materials alone are not enough, he said, and an ecosystem must be built.
Resource Matters is an international non-governmental organization working in the extractive industry.
Okenda said Congo lacks the specialized workers and infrastructure needed to transport raw materials, especially the electricity needed for large production plants. Local processing of many ores is already mandatory, but has not yet begun.
Advocating for creating value on the ground and actually implementing it, Okenda said: "It requires a very strong political will and a high level of organisational capacity. That's why I also think this should be a regional project and not just left to the Congo."
Against this backdrop, many companies are hoping to wait and see what the Congolese government and its partners can come up with. In any case, specialist mining companies have little access to further processing.
So the most promising candidate comes from China, which already dominates the battery supply chain.
China's Luoyang Molybdenum operates mines in Congo and has explicitly backed the government's plan.
A vice president said: "This is a significant and promising development in which we will play an important role. Processing raw materials locally helps us reduce logistics costs. The company's goal is to promote industrial development in the Congo."
