Is Africa really a lithium exploration hub?
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Is Africa really a lithium exploration hub?
Africa hosts large deposits of minerals but is Africa really an exploration hub for lithium?
By Leon Louw founder of WhyAfrica and editor of the WhyAfrica magazine.
There are many reports and claims that Africa is a hot spot for battery minerals and that the continent can leverage those deposits in trade negotiations with global superpowers like the USA and China.
Recently, Gwede Mantashe, South Africa’s minister of mineral and petroleum resources confidently called on African nations to withhold minerals to the United States in retaliation to Donald Trump’s move to stop aid money to African countries.
Is lithium the magic potion?
Lithium is often mentioned in the media as the magic potion that would get African economies going. That Africa holds large deposits of not only lithium, but all sorts of other “critical minerals” (excluding coal which Mantashe in no uncertain terms declared a “critical mineral) is certain.
The problem is that African countries (and especially South Africa) need to attract exploration companies to come and invest in the country to develop those perceived deposits until they are developed and start producing.
And, for various reasons that we are all aware of, that is not happening.
Limited exploration in Africa
According to S&P Global Research’s Exploration Insights report, African countries attracted the least attention from lithium exploration companies in comparison with other parts of the world. Ghana came in 9th and Namibia 10th in the race to attract exploration funds. South Africa doesn’t feature anywhere on the comprehensive list.
This even though lithium was the most explored commodity across the globe in 2024.
According to S&P, budgets for other major commodities like gold and nickel have declined. However, budgets for lithium increased by 30% in 2024.
“This marks the first time lithium exploration budgets have exceeded the one billion US Dollar mark,” the report states.
“Currently, lithium accounts for 9% of global exploration budgets, a significant rise from a decade ago when it wasn’t even in the top 10 most explored targets. Over 10 years, lithium exploration budgets have surged to nearly 30 times their 2015 levels.
“With electrification driving demand for key metals, companies are advancing assets to boost production. Explorers focus on advanced, late-stage projects, with Canada and Australia leading as exploration hubs, while the US climbed to third place.
The top ten exploration hubs for lithium in the world (2024) were Canada; Australia; USA; Argentina; Brazil; Chile; Germany; United Kingdom; Ghana; Namibia.
For obvious reasons there are exceptional opportunities in Africa, but exploration companies and investors need certainty and stability.
Is Africa really a lithium exploration hub?
