Africa is looking to expand its clean energy manufacturing sector beyond solar panels to include battery materials, electric vehicles, green steel, and low-carbon chemicals. This initiative is part of the continent’s strategy to capture greater value from its abundant mineral resources and renewable energy potential.
Currently, Africa contributes less than 1% of the global value generated from clean energy technology manufacturing, according to the International Energy Agency (IEA). Despite this, the continent provides approximately 75% of the world’s manganese, 70% of cobalt, and nearly 20% of copper, all of which are critical components for batteries and other energy technologies.
The IEA’s upcoming report, titled Stepping Up the Value Chain in Africa, identifies three key areas for growth in the region: mineral processing, manufacturing low-emission industrial materials, and clean energy equipment.
However, establishing manufacturing facilities is only one part of the challenge. A significant portion of Africa’s solar panels, about 94%, are imported from China, costing around $2.4 billion over a year up to June, as reported by the United Nations Development Programme (UNDP) during a recent Pan-African policy conference. Although some new manufacturing capacity is aimed at export markets, domestic demand still heavily relies on imported technology.
Battery Materials and Mineral Processing Offer Larger Opportunities
The IEA notes that East African countries have the potential to produce spherical graphite for battery anodes, while South Africa and Gabon could enhance their production of high-purity manganese sulfate. Additionally, the Democratic Republic of Congo (DRC) and Zambia have resources that could facilitate the processing of cobalt and copper.
If the IEA’s projections hold, the market value of Africa’s mineral sector could surge to $120 billion by 2040, representing a nearly 75% increase from current figures.
Green industrial materials also present a significant opportunity. Countries rich in renewable electricity resources could generate low-carbon power and green hydrogen to produce iron and ammonia. The IEA estimates that exports of low-emission iron could be valued at more than four times that of conventional iron ore exports at present market prices.
This move could enable African economies to enhance their focus on industrial processing instead of just mineral exports.
India’s Solar Manufacturing Expansion Offers a Policy Example
India’s recent expansion of solar manufacturing showcases how government intervention, domestic demand, and manufacturing incentives can successfully foster industry growth. The country’s solar module production capacity rose from 2.3 GW in 2014 to around 172 GW by March 2026, as per government data.
The Production-Linked Incentive (PLI) scheme linked financial incentives to the domestic production and sale of high-efficiency modules, rewarding manufacturers who added higher domestic value. The introduction of Approved List of Modules and Manufacturers (ALMM) requirements also aimed to boost demand for locally produced products.
This framework aided India in broadening its manufacturing base and attracting investment within the solar module and cell sectors.
African nations can take this lesson to heart, recognizing that manufacturing incentives must be paired with investments in mineral processing, component fabrication, technology development, and regional supply chain establishment.
