Green hydrogen sector eyes local lithium production
Produce technical-grade lithium for export to Europe
The initiative aims to capitalise on the European Union's efforts to diversify its critical mineral supply chain away from China, which currently controls over 90% of the global lithium refining capacity.
Namibia's green hydrogen programme office, in its Green Industrialisation Blueprint, is advocating for the establishment of a domestic lithium refinery to produce technical-grade lithium for export to Europe.
The initiative aims to capitalise on the European Union's efforts to diversify its critical mineral supply chain away from China, which currently controls over 90% of the global lithium refining capacity.
“China has until now dominated the industry, with 90% of processing capacity. Lithium demand has been surging on the back of the electric vehicle market, with demand forecast to increase 10 times. [There are] concerted end-user efforts underway to diversify refining," the bluprint document states.
"[There is] significant onshoring in Europe, Australia and the US – but none to date in Africa. EU investing heavily in battery-grade refining capacity creates an opening for Namibia to supply intermediate processed lithium to new EU refineries," it notes.
Spotlight on China
The blueprint also suggests Namibia should broker joint ventures (JV) for technical-grade refinery between existing local players, such as Andrada, run by Anthony Viljoen, Lepidico, managed by Timo Ipangelwa as managing director, and EU-based battery-grade refinery developers to pilot and then invest in an intermediate refinery.
The document also posits building a separation facility for rare earth elements (REE), highlighting that China’s dominance in the sector is a concern.
“China has grown to be a dominant player throughout the value chain on the back of strong government support and lowest-cost operations. China’s dominance raises supply chain concerns," the document points out.
"The refined REE market worth is N$158 billion (US$ 9 billion), with dysprosium and terbium accounting for 20% of production by value. The introduction of China export quotas has raised global supply concerns and triggered price increases and volatility."
The document notes that the EU and United States "responded by seeking to diversify supply sources to build supply chain resilience. [The] security of supply concerns may allow costlier production to enter the market."
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The initiative aims to capitalise on the European Union's efforts to diversify its critical mineral supply chain away from China, which currently controls over 90% of the global lithium refining capacity.
“China has until now dominated the industry, with 90% of processing capacity. Lithium demand has been surging on the back of the electric vehicle market, with demand forecast to increase 10 times. [There are] concerted end-user efforts underway to diversify refining," the bluprint document states.
"[There is] significant onshoring in Europe, Australia and the US – but none to date in Africa. EU investing heavily in battery-grade refining capacity creates an opening for Namibia to supply intermediate processed lithium to new EU refineries," it notes.
Spotlight on China
The blueprint also suggests Namibia should broker joint ventures (JV) for technical-grade refinery between existing local players, such as Andrada, run by Anthony Viljoen, Lepidico, managed by Timo Ipangelwa as managing director, and EU-based battery-grade refinery developers to pilot and then invest in an intermediate refinery.
The document also posits building a separation facility for rare earth elements (REE), highlighting that China’s dominance in the sector is a concern.
“China has grown to be a dominant player throughout the value chain on the back of strong government support and lowest-cost operations. China’s dominance raises supply chain concerns," the document points out.
"The refined REE market worth is N$158 billion (US$ 9 billion), with dysprosium and terbium accounting for 20% of production by value. The introduction of China export quotas has raised global supply concerns and triggered price increases and volatility."
The document notes that the EU and United States "responded by seeking to diversify supply sources to build supply chain resilience. [The] security of supply concerns may allow costlier production to enter the market."
[email protected]
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