Unlocking Africa's Mineral Wealth for Automotive Growth

The automotive industry is in the midst of its most significant transformation in a century, and Africa finds itself holding many of the keys to the future. The global shift towards electric vehicles is accelerating at a remarkable pace. In 2025, one in every four new cars sold worldwide was electric, with sales topping 20-million units for the first time.

The internal combustion engine's long reign is ending, and the raw materials that will power the next generation of vehicles—lithium, manganese, platinum group metals, and rare earths—are abundant across the African continent.

Yet a profound disconnect remains. The cars of the future are being assembled in factories across China, Europe and the Americas, while Africa largely continues to export its mineral wealth in raw form and import the finished products at a premium.

The global market is valued at over $2.6-trillion annually, and China alone produced more than 34-million vehicles in 2025, accounting for over a third of global output. Africa's share in that downstream value remains negligible.

A new chapter is unfolding, however, as major discoveries and strategic policy moves suggest the continent may finally be preparing to claim a more prominent position in the global automotive supply chain. This is not just a mining story; it is fundamentally an automotive industry story.

The global electric vehicle market has seen explosive growth. In 2025, electric car sales grew by more than 20% year-on-year, reaching 21-million units. The market is projected to grow to 4,2 terawatt-hours of battery capacity by 2030, an insatiable demand for critical minerals. This demand creates the impetus for African nations to move beyond resource extraction.

Nigeria, long known as Africa's largest oil producer, has announced what officials describe as a major new critical minerals province that could fundamentally reshape its economic trajectory. The discovery in Kaduna state contains significant deposits of lithium, platinum group metals, gold, nickel, copper and rare earth elements.

This puts Nigeria squarely into the automotive supplier conversation, as lithium and nickel are essential components for the lithium-ion batteries that are now the heart of every electric vehicle.

This discovery is critical when one considers the concentration of the global battery supply chain. Today, China dominates the processing of these materials, producing over 98% of LFP cathode material and battery cells for a chemistry now used in nearly half the global electric car market.

Europe and the United States are scrambling to diversify their sources and build out domestic manufacturing and Africa is positioning itself as an alternative supplier.

South Africa is already making concrete moves to capture more value from its mineral endowment, with direct implications for the automotive industry. The country has designated 21 minerals including manganese, platinum group metals and rare earth elements as ‘critical’, signalling an ambition to become a key supplier of materials vital for clean energy and advanced manufacturing.

Manganese Metal Company is commissioning the country’s first battery-grade manganese plant, expected to begin producing high purity manganese sulphate monohydrate soon. This is a significant step, as high-purity manganese is becoming a potential bottleneck in the battery supply chain, particularly as manufacturers shift towards lithium-iron-phosphate (LFP) chemistries.

The opportunity is clear, but the obstacles are formidable. The continent struggles with a fundamental contradiction: it cannot benefit from what it cannot power. Mineral processing is an energy-intensive activity requiring reliable baseload electricity and modern grid infrastructure. Yet businesses across many African economies lose up to 15% of their sales value due to power outages, spending billions on diesel generators.

South Africa’s electricity challenges are particularly acute. Hugo Pienaar, chief economist at the Minerals Council South Africa, told the Financial Mail electricity costs are arguably the biggest reason behind the decline in local beneficiation.

He noted if incentives were adequate to offset power costs and logistics failures, the industry would not be seeing the notable decline in chrome and manganese smelting capacity. Without affordable, reliable power, the continent cannot transform its rocks into the battery components automakers desperately need.

There is also the matter of scale and competition. The global battery manufacturing industry is massive and integrated. McKinsey analysis shows 85% of future battery demand is driven by battery electric vehicles, and China is currently the world’s EV manufacturing hub, responsible for more than 70% of global production.

To compete, African nations need to attract investment not just in mining, but in the mid-stream processing of these materials into battery-grade products.

South Africa has been working to create an enabling environment. The Department of Trade, Industry and Competition is conducting a comprehensive review of the automotive policy.

This includes reviewing the customs tariff structure, developing a battery manufacturing policy, and attracting new vehicle manufacturers. The vision, as articulated by government officials, is to ensure South Africa contributes 1% to global vehicle production, with significant local and employment growth.

For global automakers, Africa's mineral wealth offers a solution to a growing problem. Europe is transitioning from being a net exporter of light vehicles to a net importer, and Western automakers face mounting pressure from cost inflation and fragile supply chains. African minerals represent a potential source of supply outside of China, which is a strategic priority for many governments and manufacturers.

South Africa’s existing automotive industry, supporting more than 115 000 direct manufacturing jobs and contributing approximately 5,3% to GDP, provides a foundation for this transition.

Automakers like Toyota, Ford, Volkswagen, and BMW already have plants in South Africa, and models like BMW's new X3 plug-in hybrid are now exclusively produced there. These manufacturers are watching closely to see if local battery production can follow the pattern of vehicle assembly. The aim is to create a regional automotive and battery supply chain, drawing on South Africa's manganese, Zimbabwe's lithium and the DRC's cobalt.

The key to success will be decisive action on several fronts. The global battery market is projected to reach 6,8 TWh by 2035, and to capture a share of that, Africa must secure reliable, affordable power for smelters and chemical plants. It must offer targeted incentives and regional sourcing rules to attract cathode, precursor, and cell manufacturers.

It must scale financing through public-private partnerships and export credits for capital-intensive downstream plants. And it must strengthen ESG, traceability, and formalisation of artisanal mining to reduce reputational risk and meet the stringent due diligence requirements of European buyers. The EU's new battery regulations, with their focus on recycled content and carbon footprint, will be a key benchmark for suppliers.

What is clear is that Africa’s mineral moment has arrived. The Kaduna discovery, the commissioning of the battery-grade manganese plant, and the growing policy momentum all point toward a continent determined to capture more value from its resources.

The global automotive industry is evolving, and Africa is trying to move from being a provider of raw materials to a participant in the manufacturing of the cars of the future. The question is whether the necessary investments in power, infrastructure, and regional coordination will materialise to turn this ambition into reality.

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Africa's Mineral Leverage Amid US Trade Policies

Africa possesses substantial reserves of minerals critical to global industries, including the United States economy. During the Trump administration, Section 232 tariffs were imposed on steel and aluminium imports globally, impacting several African exporters such as South Africa. This raises the question: could African nations leverage their mineral exports to counter such US trade policies? A balanced analysis reveals significant complexity.

The Case for Potential Leverage:

- Criticality and Concentration: Minerals such as cobalt, platinum group metals (PGMs), and manganese are not only essential for advanced manufacturing (aerospace, defence, EVs, electronics) but also highly concentrated in specific African countries. The DRC dominates cobalt; South Africa dominates PGMs and chromite. This creates potential supply chokepoints.
- Limited Short-Term Substitutes: For many applications (eg, cobalt in specific battery chemistries, PGMs in catalysts), viable substitutes are either non-existent, significantly less efficient, or much more expensive in the near-to-medium term. Developing new sources takes years.
- Disruption Impact: Any significant disruption or deliberate restriction of these mineral flows could cause substantial price volatility and supply chain bottlenecks for US industries, potentially impacting economic growth and strategic sectors.

Significant Constraints on Leverage:

- Dispersed Interests: Africa is not a single actor. Mineral wealth is spread across numerous countries with differing political agendas, economic priorities, and relationships with the US. Achieving coordinated action across the continent on trade policy, especially targeting the US, is highly improbable. The African Continental Free Trade Area (AfCFTA) is nascent and focuses on intra-African trade.
- Mutual Dependence: Many African economies are heavily reliant on mineral export revenues. Restricting exports to the US (a major market) could inflict severe economic damage on the exporting countries themselves, potentially destabilising economies and governments. This creates a significant disincentive.
- US Mitigation Strategies: The US is acutely aware of these supply risks. Responses could include:
- Increased Domestic Production/Recycling: Incentivising mining within the US or allied nations (though challenging and slow).
- Stockpiling: Using the National Defense Stockpile.
- Allied Sourcing: Strengthening supply chains with friendly nations (e.g., Australia for some minerals).
- Technological Innovation: Accelerating research into alternative materials or battery chemistries (e.g., cobalt-free batteries).
- Financial/Political Pressure: Utilising tools like sanctions or leveraging international financial institutions.
- AGOA Factor: The African Growth and Opportunity Act (AGOA) grants many Sub-Saharan African countries preferential tariff access to the US market for non-mineral exports (textiles, agriculture, etc.). Threatening mineral exports could jeopardise these valuable benefits.
- Specificity of Tariffs: The Trump-era tariffs targeted specific products (steel, aluminium), not the raw minerals themselves. While tariffs hurt African aluminium exporters (like South Africa) processing bauxite, the primary bauxite producers (eg, Guinea) were less directly impacted. Leveraging unrelated minerals (like cobalt) against aluminium tariffs would be an indirect and legally/politically complex strategy.

A Balanced Perspective:

While Africa holds globally significant reserves of minerals critical to the US economy, the notion of the continent wielding this as a unified, effective bargaining chip against specific US tariffs like those imposed under Trump faces substantial hurdles.

The concentration of certain minerals provides theoretical leverage points. However, the fragmentation of African nations, their own deep economic dependence on mineral exports, the existence of mechanisms like AGOA, and the US's capacity to pursue mitigation strategies significantly weaken the practical ability to translate this mineral wealth into tangible trade concessions on unrelated tariffs.

Attempting aggressive leverage could easily backfire, harming African economies more than the US in the short-to-medium term, while accelerating US efforts to reduce dependence on African minerals in the long term – an outcome contrary to Africa's interests in sustained mineral revenue.

A More Pragmatic Path:

Rather than confrontation, the more viable strategy for African mineral-rich nations lies in:

- Value Addition: Processing minerals domestically before export (e.g., refining cobalt, manufacturing battery precursors) to capture more economic benefit and create jobs.
- Stable Investment Frameworks: Attracting responsible investment for exploration and mining through predictable, transparent regulations and reduced political risk.
- Strategic Partnerships: Negotiating mutually beneficial, long-term supply agreements with consumer nations and companies, potentially linked to infrastructure development or technology transfer, rather than reacting to specific tariffs.
- Intra-African Coordination (where possible): Collaborating on policies like environmental standards or local beneficiation goals to strengthen their collective position within global value chains.

Conclusion:

Africa's mineral wealth grants it inherent economic significance, particularly concerning specific critical minerals. However, translating this into leverage against US trade policies like the Trump tariffs is fraught with practical difficulties and significant risks for African economies. The path to maximising Africa's benefit from its resources more likely lies in internal development, value addition, and fostering stable, mutually beneficial partnerships, rather than in attempting short-term, high-stakes leverage that could undermine long-term economic stability and growth. The relationship remains one of complex interdependence, not one where Africa holds a simple, decisive upper hand.

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Colin-on-Cars - Mahindra adds range of special vehicles

Mahindra South Africa is capitalising on its Durban assembly facilities by branching out with the PikUp into specialised markets and has launched options for the medical services, game viewing and mining sectors.

Based on the Mahindra Pik Up S6 Single Cab Chassis Cab, the new Pik Up Ambulance offers go-anywhere medical mobility for first responders and medical staff, especially in rural areas and to reach crisis sites through off road or through rubble and debris.

The new Pik Up Ambulance is converted with a double-walled and insulated ambulance cabin. These proven underpinnings and the support from Mahindra engineers mean that the model carries a full factory warranty and is available as either an S6 Single Cab 4x2 or S6 Single Cab 4x4.

While there are significant customisation options, the Pik Up Ambulance was created with feedback from medical professionals to ensure that it fits the broadest range of applications from the onset. The range of custom options are available directly from Mahindra and are also covered by comprehensive warranty support.

These requirements include an access ramp to enable the smooth transition of the patient from curb to cabin, with the roll and cot stretcher included in the package specifications. There is an additional spine board that is flush fitting and secured to the side.

The canopy itself is double-walled and insulated, with frosted laminated side windows and one-way windows in the rear. The floor is shock-proof and has been treated with a hard-wearing anti-skid coating.

Inside the ambulance cabin, Mahindra has fitted a range of medically approved equipment that is not only easy to reach and use but allows most customers to buy and use the ambulance without requiring additional customisation and certification.

The range of equipment includes an air conditioner linked to that of the driver cabin, a fresh water system with basin, oxygen tanks, an intercom, interior LED-lighting, a swivel rear spotlight and storage space that double up as a bench. This equipment, and the additional power points in the rear cabin, are powered from an additional battery system fitted in the engine bay.

Each Pik Up Ambulance also has a public address system with siren, a regulation set of red and orange emergency vehicle lights and a range of decals for each province and application.

The S6 also includes luxuries such as cruise control and air-conditioning fitted as standard. The standard Pik Up S6 has a ground clearance of 210 mm, with an approach angle of 34 degrees, a departure angle of 15 degrees and a breakover-angle of 18 degrees. The bakkie is certified to tow a braked trailer of up to 2 500 kg and it has a combined fuel consumption of 7,7 litres per 100 km.

Every Pik Up model offers dual front crash bags, anti-lock brakes with EBD, side-impact protection, and seatbelt reminders as standard.

Also standard, is the mHawk turbo-diesel engine with common-rail direct injection. This engine delivers 103 kW and 320 Nm.

The new S4 Mahindra Pik Up Game Viewer launches in South Africa with a full manufacturer warranty. The standard offering adds features normally required by game farms and tourist operators and is available with the choice of 4x2 and 4x4 drivetrains. In addition, a customised solution is available for specific client needs.

“With its breadth of talent as both a workhorse and a leisure vehicle, it is no surprise that the Pik Up has become such a popular bakkie in South Africa,” says Rajesh Gupta, CEO of Mahindra South Africa.

“We have been listening to our customers and, together with our manufacturing team, suppliers and industry partners have decided to expand the range with a series of locally developed and tested built-for-purpose models. There first of these is our new Game Viewer.”

Built on the S4 Single Cab platform with the input from game farms and tourist operators, the new Game Viewer has a 1 195 kg payload, a 3 040 mm wheelbase and 210 mm ground clearance. This makes it ideal for duty in the rugged African bushveld and for the safe and comfortable movement of up to ten guests.

The standard model features an open cabin to allow for easy movement by the tour guide and unspoiled views by the guests. Mahindra has included a fold-down windscreen, rubberised interior for extra durability in all weather conditions, and passenger access on either side of the wheel well on the right-hand side of the vehicle.

The standard upholstery is replaced by rip stop canvas and there is a new high roof that doubles as a heavy-duty roll cage with similar canvas covering.

In the back, Mahindra has added nine individual padded seats, each with an anchored lap belt. This will ensure the highest level of comfort and safety when travelling on tar or dirt.

Options include an extended foldaway polycarbonate windscreen that reaches the roof, a marine-ply roof cover, canvas roll down sides, additional 12V plug points inside the cabin, an optional wheel fitted on the rear of the cage and a nudge bar. Further, a full customized solution is available to cater to a customer’s specific needs.

The new Pik Up with Mining Specification package is available on the recently upgraded S6 manual double cab with 4x4 drivetrain.

The Mining Specification Pik Up is fitted with heavy-duty external roll-over protection, the necessary red, white and yellow decals, a roof-mounted light bar and a reverse buzzer.

Other additions to this specification include a rubberised load bin with cargo net, stop blocks, wheel nut indicators and heavy-duty seat covers. Mahindra has also added a fire extinguisher, First Aid kit and COVID kit.

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