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CAPE TOWN. – The United States (US) is still very much in the race for lithium deposits in Africa and South America, but China has jumped ahead.
With 750 000 tonnes, the US has 2 percent of the world’s lithium deposits – a mineral that billionaire Tesla owner Elon Musk refers to as “the new oil” – while its rival, Chile, has the world’s largest known-lithium reserves.
Africa’s deposits position it as a potential world leader in lithium mining. However, due to poor infrastructure, such as roads, specifically in landlocked countries, as well as chaos in the DRC, and Mali being under unaccountable junta leaders, it’s a huge challenge, according to a diplomatic source who is attending the Mining Indaba in Cape Town.
Still, it’s a lucrative market that China is exploring to the extent that countries such as Zimbabwe banned raw lithium exports destined for China last month.
Speaking to a select group of African journalists via Zoom, US Under Secretary of State for Economic Growth, Energy, and the Environment Jose Fernandez said America’s need for lithium in the next few years would go up 42 times.
Fernandez is attending the Mining Indaba.
“We will need 42 times the amount of lithium that we have today,” he said.
For the US to achieve this, he said, it should be a win-win solution, instead of the proverbial resource curse.
“This presents an opportunity for African nations to benefit from the need for these minerals. But in order to do that, it’s got to be done responsibly.
“It means that we’ve got to reach out to communities that – we have to reach out to communities, make sure that communities are consulted and also benefit from the mining, that mines do not create environmental hazards, and that we have the most transparent way of engaging in the mining sector,” he said.
“We are working with the Democratic Republic of the Congo, with Ghana, with Mali to try to find ways to formalise the (mining) sector, to introduce ESG (environmental, social, and governance) standards, and to work to remove toxic chemicals from the extractive process,” Fernandez added. – News24.com
Online Reporter