Why China’s EV boom is seen as an ‘unparalleled opportunity’ in Africa
While the US and some European governments view China’s vast production of electric vehicles and green-energy tech as overcapacity, African companies see it as an opportunity to secure EV technology and develop the industry. China is the global leader of the EV industry – it makes nearly 75 per cent of the world’s electric vehicles and dominates the supply chain. Its high production has driven…
China's electric vehicle (EV) industry is booming, with the country accounting for nearly 75 percent of the world's EV production. This dominance has led to concerns from Western governments, who view it as overcapacity. However, African nations see this development as an unparalleled opportunity to access advanced EV technology and cut costs.
Chinese companies are investing heavily in assembly plants and battery supply chains across Africa, rather than simply exporting finished vehicles. This move provides African businesses with access to proven technology at lower costs, as EVs, batteries, and components are now more affordable. African countries possess significant deposits of cobalt and lithium, essential components in EV batteries, but much of the processing currently happens elsewhere.
The Democratic Republic of Congo produces nearly two-thirds of the world's cobalt, while most of Zimbabwe's lithium is exported to China, which dominates processing. The United States and some Western allies have imposed tariffs on Chinese EVs, aiming to protect domestic manufacturers. However, China disputes these claims, citing innovation and economies of scale as the reasons for its success.
African experts also question the notion of overcapacity, believing that China's EV market is not yet saturated and that Western countries should capitalize on this opportunity instead. African nations like Morocco, Egypt, South Africa, Kenya, and Rwanda have the potential to advance further in the cleantech sector, provided they work on larger markets, regional supply chains, and coordinated policies within the African Continental Free Trade Area.
Chinese car manufacturers have already begun expanding their presence in Africa, with Chery setting up assembly in South Africa, Nissan's plant acquiring in Egypt, and Cobco starting production in Morocco, among others.
Written by urgent.news from South China Morning Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
