Cobalt and Lithium in Africa: The Critical Minerals Powering the Global Energy Transition

The world’s shift toward electric vehicles, renewable energy storage, and clean technology runs through Africa. The continent sits on some of the richest cobalt and lithium deposits on the planet, and the race to develop them is already reshaping mining investment strategies across the globe. For investors focused on minerals and mining, cobalt and lithium represent one of the clearest, fastest-growing opportunities on the continent today.

This article explores why Africa’s cobalt and lithium sector matters, where the biggest projects and producers are located, and what investors need to understand before entering this fast-moving market.

Why Cobalt and Lithium Matter for the Global Economy

Cobalt and lithium are both essential components of lithium-ion batteries the technology powering electric vehicles, smartphones, and grid-scale energy storage systems. As the world accelerates its shift away from fossil fuels, demand for both minerals has surged, and Africa has emerged as an indispensable supplier.

According to the African Energy Chamber’s State of African Energy 2026 Outlook, Africa led global production of cobalt, copper, gold, and platinum group metals in 2024, while rapidly expanding its lithium sector. Solar panels, wind turbines, EV batteries, and energy storage systems all require significantly more cobalt, lithium, and nickel than conventional energy infrastructure — a structural demand shift that favors mineral-rich African economies for decades to come.

Cobalt: The Democratic Republic of Congo’s Dominant Position

A Global Supply Powerhouse

The Democratic Republic of Congo (DRC) dominates global cobalt supply, with its top mines — including Kisanfu and Tenke Fungurume together accounting for more than 50% of global cobalt output. This concentration gives the DRC outsized influence over global battery supply chains, since cobalt remains a cornerstone input for most lithium-ion battery chemistries.

Moving Up the Value Chain

Rather than simply exporting raw ore, the DRC is now developing refining capacity to convert cobalt hydroxide into higher-value cobalt metal domestically. The government implemented temporary cobalt export bans in 2025 to help stabilize global prices and is now considering flexible export quotas designed to balance market stability with long-term producer profitability. This shift toward domestic beneficiation — turning raw material exports into higher-value processed products — is one of the most important trends shaping investment opportunities in the sector.

Cobalt-Lithium Synergy at Manono

The DRC is also positioning itself as a dual supplier of cobalt and lithium through the Manono Project, one of the world’s largest undeveloped hard-rock lithium deposits. Located in Tanganyika Province within a 13-kilometer pegmatite belt, Manono holds preliminary resource estimates exceeding 400 million tonnes of lithium-rich ore. Chinese mining giant Zijin Mining, alongside AVZ Minerals and KoBold Metals, is expected to begin operations at Manono in mid-to-late 2026 — marking the DRC’s first lithium output and a significant diversification beyond its traditional copper-cobalt base, as reported by African Mining Week.

Lithium: Zimbabwe Leads Africa’s New “Lithium Triangle”

Zimbabwe’s Position as Africa’s Top Producer

Zimbabwe is currently Africa’s largest lithium producer and ranks among the top five globally. Its lithium wealth is concentrated in spodumene- and petalite-bearing pegmatites across the Bikita, Arcadia, and Zulu regions — with Bikita Mine, in operation since the 1950s, now undergoing major expansion to supply lithium hydroxide to EV markets.

A Sharp Pivot Toward Local Processing

In a major policy shift, Zimbabwe’s government banned exports of all raw, unprocessed minerals in February 2026, pushing the sector firmly toward domestic beneficiation. This led Zhejiang Huayou Cobalt to commission a $400 million lithium sulfate refining plant at the Arcadia Mine — the first of its kind in Africa — with Prospect Lithium Zimbabwe dispatching its first export of processed lithium sulphate shortly after. According to reporting by Al Jazeera, Zimbabwe’s lithium export earnings more than doubled year-on-year in the first quarter of 2026 following the export ban, rising from roughly $84 million to $179 million.

This matters enormously for value capture: a metric ton of raw lithium concentrate captures only around $3,000 in value, compared to roughly $25,000 per ton for high-purity, processed lithium sulphate — a difference that explains why so many African governments are now mandating local processing.

Namibia and the Emerging Lithium Triangle

Alongside Zimbabwe and the DRC, Namibia has emerged as the third point of what analysts now call Africa’s “Lithium Triangle.” Namibia’s pegmatite belt across the Erongo and Hardap regions hosts projects such as the Desert Lion Energy Project near Karibib and the Uis Mine, where AfriTin Mining is reviving a former tin operation to co-produce lithium and tantalum.

Africa’s Critical Minerals by the Numbers

• Africa produced 124,230 tons of lithium carbonate equivalent (LCE) in 2024, primarily from hard-rock spodumene deposits.
• The continent holds an estimated 26.7 million tons of identified lithium resources — roughly 5% of the global total.
• African lithium production costs range from $250 to $650 per ton of spodumene concentrate, competitive against Australia’s global benchmark of approximately $800 per ton.
• Industry analysts estimate $276 billion in new investment will be needed globally by 2028 to avoid forecast lithium supply deficits — positioning Africa’s lithium-rich economies to attract a meaningful share of that capital.

Other Markets to Watch

• Mali — Rapidly positioning itself as a key lithium producer, with the government mandating national equity stakes in new projects to retain greater economic benefit.
• Ghana — Advancing lithium development alongside state participation requirements similar to Mali’s approach.
• Zambia — A cobalt refinery has been identified as globally strategic under the EU’s Critical Raw Materials Act, attracting technical and financial support for downstream processing.
• South Africa — Hosts the Blesberg lithium project in the Northern Cape, with resource estimates between 250,000 and 400,000 tons.

International capital is following these developments closely. The U.S., through the Development Finance Corporation and the Minerals Security Partnership, has invested over $200 million in African mining projects focused on infrastructure, responsible sourcing, and local battery production in collaboration with the DRC and Zambia.

Key Risks Investors Should Understand

• Regulatory volatility — Export bans and shifting beneficiation requirements, as seen in Zimbabwe and the DRC, can change project economics quickly and require investors to stay closely engaged with policy developments.
• Concentration of foreign ownership — Chinese companies currently dominate much of Africa’s lithium processing and mining infrastructure, which creates both opportunity and exposure to geopolitical and supply-chain risk.
• Governance and ESG concerns — Independent research from organizations such as Global Witness has flagged governance, environmental, and social risks tied to rapid, under-regulated lithium development in emerging mining regions.
• Project execution risk — High-profile projects like Manono have experienced ownership disputes and delays, underscoring the importance of thorough legal and operational due diligence before committing capital.
• Price volatility — As with all commodities, cobalt and lithium prices can swing significantly based on global EV demand cycles and battery technology shifts.

How Investors Can Approach the Sector

1. Prioritize projects with established operators. Companies with verifiable production track records — such as those operating Zimbabwe’s Bikita and Arcadia mines — carry lower execution risk than early-stage exploration plays.
2. Watch beneficiation policy closely. Countries mandating local processing are reshaping where value is captured in the supply chain; understanding these policies is essential to evaluating project economics.
3. Diversify across the “Lithium Triangle.” Spreading exposure across Zimbabwe, Namibia, and the DRC can help balance country-specific regulatory and political risk.
4. Evaluate ESG practices directly. Given documented governance concerns in parts of the sector, due diligence on environmental and labor practices should be a core part of any investment evaluation.
5. Track downstream and midstream opportunities. Refining, processing, and battery-grade conversion facilities are becoming increasingly valuable investment targets as African governments push beneficiation.

Conclusion: Africa’s Battery Metals Moment Has Arrived

Cobalt and lithium are no longer peripheral commodities they are central to the infrastructure of the global energy transition, and Africa holds an outsized share of the world’s reserves. From the DRC’s cobalt dominance and emerging lithium ambitions at Manono, to Zimbabwe’s rapid pivot toward local processing and Namibia’s growing exploration activity, the continent is fast becoming indispensable to global battery supply chains.

Ready to explore mining and critical minerals investment opportunities across Africa? Connect with the Yes! Invest Africa team today to discover vetted projects in cobalt, lithium, and other strategic minerals positioned at the center of the global energy transition.

Frequently Asked Questions

1. Why is Africa so important to the global cobalt and lithium supply chain? The Democratic Republic of Congo alone produces more than half of the world’s cobalt, while Zimbabwe is Africa’s largest lithium producer and one of the top five globally — making the continent essential to battery and EV supply chains.
2. Which African countries are leading in lithium production? Zimbabwe currently leads African lithium production, followed by emerging producers in Mali, Namibia, South Africa, Ghana, and the DRC, which together form what analysts call Africa’s “Lithium Triangle.”
3. What is driving the shift toward local mineral processing in Africa? Several governments, including Zimbabwe and the DRC, have introduced export bans and beneficiation requirements to capture more economic value domestically, since processed minerals like lithium sulphate are worth far more than raw concentrate.
4. What are the main risks of investing in African cobalt and lithium projects? Key risks include regulatory volatility, concentrated foreign ownership, governance and ESG concerns, project execution delays, and commodity price volatility tied to global EV demand cycles.
5. How much investment is needed to meet global lithium demand from African supply? Industry estimates suggest approximately $276 billion in new investment is needed globally by 2028 to avoid forecast lithium supply deficits, with Africa’s lithium-rich countries positioned to attract a significant share of that capital.