Demand for critical minerals, which are essential for the production of lithium-ion batteries and associated technologies behind solar and wind components and renewable power systems, is expected to increase 500% by 2050 as global players make strides toward a cleaner energy future.
As a result, investment in the mining and green mining industries has begun to accelerate, with South Africa well-positioned to capitalize on this opportunity.
Investing in South Africa’s critical mineral resources will create economic opportunities such as job creation, revenue generation, and the acceleration of the Just Energy Transition but will also be critical for diversifying global supply chains and lowering prices: a goal set by countries around the world.
Speaking in an interview with eNCA about the upcoming African Critical Minerals Summit (ACMS) (https://AfricanCriticalMinerals.com/) – taking place in Johannesburg from November 6-7, James Chester, Senior Director of ACMS organizer Energy Capital & Power (ECP), stated that, “The ground has already been laid for deal making with South Africa in this sector. There is a group of 11 countries – the Mineral Security Partnership (MSP) – announced in 2022. This is a group of developed countries that are looking for projects across the world so that they can diversify their supply chain. There are billions of dollars waiting to be invested in South Africa and across Africa. We need to create the environment where that money can come in and those projects can be executed.”
Representing a US-led initiative that aims to bolster supply chains while catalyzing investment from Government and the private sector, the MSP is seeking alternative investment opportunities, focusing on minerals such as cobalt, nickel, and lithium as well as the 17 REEs, and all attention has turned to South Africa. Amid concerns over market overreliance and supply bottlenecks, the MSP is looking at investing in Africa’s entire mineral value chain.
Stepping into this picture, the ACMS will connect private sector investment with public sector stakeholders, laying the foundation for new deals to be signed across the market. The ACMS was officially launched in Johannesburg on April 14 at a networking event that united high-level public and private sector stakeholders. The Summit itself is scheduled to take place on November 6-7, hosted by South Africa’s Department of Mineral Resources and Energy, and will welcome African and global delegates to discuss the role that Africa’s mineral resources will play in accelerating the global energy transition while addressing energy security concerns and advancing socioeconomic growth across Africa.
According to Chester;
It is the Department of Mineral Resources and Energy that is really driving this initiative. They want to put forward that they have a plan for critical minerals and want to articulate that further in November,” adding that, “The energy transition is here. It is the role of the private sector, together with the public sector, to ensure that people and businesses are ready for that and that South Africa takes advantage and is not in the position of following the rest of the world, but actually leading the rest of the world.
