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 dominance in the electric vehicle (EV) industry is being viewed by African companies as a significant opportunity to secure EV technology and develop the sector. China produces nearly 75% of the world's EVs, driving down costs, and is investing in assembly plants and battery supply chains across Africa. This approach contrasts with Western countries, who see China's production as overcapacity and impose tariffs on EVs.
Africa has abundant resources such as cobalt and lithium, crucial for EV batteries, but processing often occurs elsewhere. Despite the US and EU warning about potential undercutting of local manufacturers, China maintains that its growth is due to innovation and economies of scale. African countries aim to benefit from China's industrial growth while tailoring it to their unique economic and institutional circumstances.
Countries like Morocco, Egypt, South Africa, Kenya, and Rwanda could move up the cleantech value chain with larger markets, better policy coordination, and support from the African Continental Free Trade Area. Chinese automakers are expanding their footprint in Africa, with Chery set to produce plug-in hybrids and battery-electric vehicles in South Africa, and plans for local assembly in Egypt.
Moroccan firm Cobco is already manufacturing battery materials, and Chinese companies are building plants for batteries and components in Morocco.
Written by urgent.news from Reuters Business via SCMP's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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