 Germany says it is willing to assist Namibia, among other nations with vast lithium reserves, to set up a local lithium processing infrastructure.
This was said by German Chancellor Olaf Scholz who highlighted that the move is aimed at moving from relying on one supplier.
“If we succeed in locating more processing steps where the raw materials are in the ground, then that will not only create greater local prosperity … we will ensure that we have more than just one supplier in the future,” Scholz was quoted by Reuters.
In November last year, Namibia inked a deal with the EU which will ensure the trade bloc’s access to the Namibia’s rare earth metals to power the global transition to green energy.
This comes as Namibia is now demanding that lithium mined in the country should be processed locally to enhance local beneficiation, a stance already implemented by Zimbabwe.
According to global data, the price for lithium carbonate—the compound that gets extracted from the ground—has shot up 432% year over year, hitting over N$1.1 million (US$62,000) per metric tonne from an average of N$190,000 (US$11,000) six years ago.
Lithium is a critical component in rechargeable lithium-ion batteries, which are used in most personal electronics and electric vehicles.
The lithium price spike is due to the booming electric vehicle market, which is putting demand pressure on battery producers, which in turn puts demand pressure on the minerals’ suppliers.
