Namibia is positioned as one of the top five African countries ready to capitalise on the impending lithium boom, securing the fourth spot after Zimbabwe, Mali, and the Democratic Republic of Congo, a new survey has shown.
According to the U.S. Geological Survey’s Mineral Commodity Summaries for 2023, the world has witnessed a substantial increase in identified lithium resources, amounting to about 98 million tonnes.
The United States claims 12 million tonnes from sources like continental brines, claystone, geothermal brines, hectorite, oilfield brines, and pegmatites. Other countries account for the remaining 86 million tonnes.
According to the survey, lithium reserves are distributed across Africa and topped by, “Congo (Kinshasa) with 3 million tonnes, followed by Mali with 840,000 tonnes, Zimbabwe with 690,000 tonnes, Namibia with 230,000 tonnes and Ghana with 180,000 tonnes.”
According to insights from Sputnik Africa, the global push for greener energy sources and net-zero objectives set by governments has led to an increased demand for battery metals like lithium, utilised in the production of batteries for items ranging from laptops to electric cars.
Consequently, Africa is emerging as a pivotal supplier of this crucial metal, which is vital for the green transition.
“S&P Global Commodity Insights projects a more than 30-fold increase in lithium production across the continent by 2027 compared to last year’s volume. Africa’s export of lithium raw materials is projected to surge from 1% in 2022 to 12% of the global supply within around four years. Mali, the Democratic Republic of Congo, and Zimbabwe are expected to be the leading lithium suppliers on the continent,” the Sputnik’s informative graphics noted.
This trend aligns with the growing demand for lithium, projected to skyrocket by 2025, with an estimated value of N$13.9 billion in Namibia.
This development can significantly boost Namibia’s export earnings and revenue, as indicated by a local research firm.
Simonis Storm’s projections suggest that in the most optimistic scenario, lithium could contribute N$4.6 billion to the government’s revenue, and in the conservative scenario, N$1.7 billion.
The lithium industry in Namibia report by the same firm underscores that the revenue generated by the local lithium sector could outpace all other commodity mining operations in the country.
“While the revival of lithium production in Namibia is anticipated to have a positive impact on the economy, particularly in terms of export earnings and government revenue, its potential to substantially impact socioeconomic indicators like employment is considered limited due to the capital-intensive nature of mining,” said Simonis Storm.
Furthermore, Simonis Storm’s calculations specifically exclude other lithium operations that are still in the exploration phase.
The firm bases its market size estimation on publicly available production estimates from a local mine, using an average of forecasted global lithium prices for 2025 (US$55,000 per tonne), alongside current prices of approximately US$26,000 per tonne and a median price of around US$40,000 per tonne.
This comes as in a significant move, Namibia inked an agreement with the EU in November of the previous year, ensuring the trade bloc’s access to the country’s rare earth metals, essential for the global transition to green energy.
Additionally, in April, German Chancellor Olaf Scholz pledged assistance to Namibia, along with other nations boasting extensive lithium reserves, to establish local lithium processing.
