{"id":2051,"date":"2021-12-05T17:09:35","date_gmt":"2021-12-05T16:09:35","guid":{"rendered":"https:\/\/a2kadvisory.com\/?p=2051"},"modified":"2021-12-05T17:43:23","modified_gmt":"2021-12-05T16:43:23","slug":"kinshasas-hopes-and-the-coming-cobalt-crunch","status":"publish","type":"post","link":"https:\/\/a2kadvisory.com\/fr\/2021\/12\/05\/kinshasas-hopes-and-the-coming-cobalt-crunch\/","title":{"rendered":"Kinshasa\u2019s hopes and the coming cobalt crunch"},"content":{"rendered":"<div data-elementor-type=\"wp-post\" data-elementor-id=\"2051\" class=\"elementor elementor-2051\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-7ca558b0 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"7ca558b0\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-61ef868a\" data-id=\"61ef868a\" data-element_type=\"column\" data-e-type=\"column\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-15574fe7 elementor-widget__width-auto elementor-view-stacked elementor-shape-circle elementor-widget elementor-widget-icon\" data-id=\"15574fe7\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"icon.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-icon-wrapper\">\n\t\t\t<div class=\"elementor-icon\">\n\t\t\t<i aria-hidden=\"true\" class=\"far fa-thumbs-up\"><\/i>\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-605f8689 elementor-widget__width-auto elementor-view-stacked elementor-shape-circle elementor-widget elementor-widget-icon\" data-id=\"605f8689\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"icon.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-icon-wrapper\">\n\t\t\t<div class=\"elementor-icon\">\n\t\t\t<i aria-hidden=\"true\" class=\"fas fa-comments\"><\/i>\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6cf75b65 elementor-widget elementor-widget-text-editor\" data-id=\"6cf75b65\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div id=\"single-post\" class=\"container my-4\" data-post-id=\"1043168\"><div class=\"site-content single\"><div class=\"single\"><div class=\"post-inner-content row\"><div class=\"col-lg-8 order-0\"><p>A Baojun E100 electric vehicle stands plugged in to a charging station outside a SAIC-GM-Wuling Automobile Co. Baojun E100 Customer Experience Center, a joint venture between SAIC Motor Corp., General Motors Co. and Liuzhou Wuling Automobile Industry Co., in Liuzhou, Guangxi province, China, on Wednesday, May 23, 2018. Photographer: Qilai Shen\/Bloomberg<\/p><\/div><\/div><\/div><\/div><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-18a3cf49 elementor-widget-divider--view-line elementor-widget elementor-widget-divider\" data-id=\"18a3cf49\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"divider.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-divider\">\n\t\t\t<span class=\"elementor-divider-separator\">\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2ddaa837 elementor-widget elementor-widget-text-editor\" data-id=\"2ddaa837\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div id=\"single-post\" class=\"container my-4\" data-post-id=\"1043168\"><div class=\"site-content single\"><div class=\"single\"><div class=\"post-inner-content row\"><div class=\"col-lg-8 order-0\"><p>These new resources, such as cobalt, lithium and manganese, are essential to cutting emissions and limiting climate change. But new developments pose their own challenges, which may yet come to hamper uptake of alternative resources.<\/p><p>The International Energy Agency (IEA) has suggested demand for minerals to support the energy transition will double to 2040. If the world took the steps required to limit warming to less than 2 degrees Celsius, demand for these minerals would quadruple.<\/p><p>Cobalt is perhaps the leading example of a contested mineral that will play a key role in the transition. Congo Kinshasa accounted for around 70% of supply in 2019. Russia and Australia provide around 4% each. Cobalt is mostly produced from copper mines.<\/p><p>At a forum last week in Kinshasa, a number of high-ranking politicians and executives got together to talk over improved ways of pursuing opportunities.<\/p><p>Congolese President Felix Tshisekedi said the country\u2019s minerals provided it with a \u201cstrategic position to influence the global renewable energy transition\u201d.<\/p><\/div><\/div><\/div><\/div><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-652eb8f5 elementor-widget__width-auto elementor-widget elementor-widget-heading\" data-id=\"652eb8f5\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Building power<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2a7ad174 elementor-widget elementor-widget-spacer\" data-id=\"2a7ad174\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-31012897 elementor-widget elementor-widget-text-editor\" data-id=\"31012897\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div id=\"single-post\" class=\"container my-4\" data-post-id=\"1043168\"><div class=\"site-content single\"><div class=\"single\"><div class=\"post-inner-content row\"><div class=\"col-lg-8 order-0\"><p>In particular, a\u00a0<a href=\"https:\/\/www.uneca.org\/stories\/producing-battery-materials-in-the-drc-could-lower-supply-chain-emissions-and-add-value-to#netzero2050\" target=\"_blank\" rel=\"noopener\">new study from BloombergNEF (BNEF)<\/a>\u00a0was touted as showing that building a 10,000 tonne battery cathode precursor plant in Congo would cost only $39 million. This would be cheaper than Poland, China or the US.<\/p><\/div><\/div><\/div><\/div><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5f0295e8 elementor-widget elementor-widget-image\" data-id=\"5f0295e8\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"768\" height=\"485\" src=\"https:\/\/a2kadvisory.com\/wp-content\/uploads\/2021\/12\/BNEF-Figure-1-Capital-cost-to-build-a-10k-metric-ton-battery-precursor-plant_WP-2x65mnl7e-768x485-1.png\" class=\"attachment-large size-large wp-image-2055\" alt=\"Kinshasa\u2019s hopes and the coming cobalt crunch\" srcset=\"https:\/\/a2kadvisory.com\/wp-content\/uploads\/2021\/12\/BNEF-Figure-1-Capital-cost-to-build-a-10k-metric-ton-battery-precursor-plant_WP-2x65mnl7e-768x485-1.png 768w, https:\/\/a2kadvisory.com\/wp-content\/uploads\/2021\/12\/BNEF-Figure-1-Capital-cost-to-build-a-10k-metric-ton-battery-precursor-plant_WP-2x65mnl7e-768x485-1-300x189.png 300w, https:\/\/a2kadvisory.com\/wp-content\/uploads\/2021\/12\/BNEF-Figure-1-Capital-cost-to-build-a-10k-metric-ton-battery-precursor-plant_WP-2x65mnl7e-768x485-1-18x12.png 18w\" sizes=\"(max-width: 768px) 100vw, 768px\" title=\"\">\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-16f4ebfd elementor-widget elementor-widget-text-editor\" data-id=\"16f4ebfd\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div id=\"single-post\" class=\"container my-4\" data-post-id=\"1043168\"><div class=\"site-content single\"><div class=\"single\"><div class=\"post-inner-content row\"><div class=\"col-lg-8 order-0\"><p>Producing in Congo Kinshasa would also have a lower environmental impact, the study said.<\/p><p>The United Nations Economic Commission for Africa (UNECA) deputy executive secretary Antonio Pedro, in an interview, said the extractive business had been \u201cmodelled on those from colonial times. Most mines and extractive industries are still enclaves with no links to the local economy.\u201d<\/p><div class=\"breakout\"><div class=\"breakout__content\"><span style=\"font-size: 16px;\">There have been efforts in the past to tackle this challenge. \u201cIt\u2019s different this time around,\u201d he said. \u201cBNEF has strong credibility and it has come and said loudly that [Congo Kinshasa] beats any competition.\u201d<\/span><\/div><\/div><\/div><\/div><\/div><\/div><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5e5b5017 elementor-widget__width-auto elementor-widget elementor-widget-heading\" data-id=\"5e5b5017\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Finding demand<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4eee6cf9 elementor-widget elementor-widget-spacer\" data-id=\"4eee6cf9\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-63a2b737 elementor-widget elementor-widget-text-editor\" data-id=\"63a2b737\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div id=\"single-post\" class=\"container my-4\" data-post-id=\"1043168\"><div class=\"site-content single\"><div class=\"single\"><div class=\"post-inner-content row\"><div class=\"col-lg-8 order-0\"><p>Europe is becoming the largest market for electric vehicles (EVs), Pedro continued. Currently, it imports most batteries from China and South Korea. The European Union is taking steps to improve supply chains for batteries, though.<\/p><p>\u201cEurope could start producing its own batteries. But then it is caught up in the same problem of having to import raw materials. As a result, carbon credentials will not meet battery passport criteria,\u201d Pedro said.<\/p><p>\u201cIf you were to manufacture batteries in Congo, your carbon credentials would be extremely good,\u201d he continued. Poland is one major competitor, producing battery precursors close to vehicle manufacturing centres. \u201cBut they use coal as their energy \u2013 so the carbon credentials are very poor.\u201d<\/p><p>Cobalt demand could be anywhere\u00a0<a href=\"https:\/\/www.iea.org\/reports\/the-role-of-critical-minerals-in-clean-energy-transitions\/the-state-of-play#abstract\" target=\"_blank\" rel=\"noopener\">from six to 30 times higher than today\u2019s levels<\/a>, the IEA said, depending on how batteries evolve and climate policies. Existing mines, and projects under construction, would provide only half the required volumes in 2030.<\/p><p>The US Department of Energy (DoE) has described cobalt as having the \u201chighest material supply chain risk\u201d for electric vehicles (EVs). It reports that for each EV battery with 100 kWh of storage, up to 20 kg of cobalt are required.<\/p><p>Kinshasa expects that cobalt demand will double from 145,000 tonnes in 2020 to 290,000 tonnes by 2030.<\/p><div class=\"breakout\"><div class=\"breakout__content\"><span style=\"font-size: 16px;\">While Congo Kinshasa may produce much of the world\u2019s cobalt, China is the world\u2019s largest refiner of the resource. Its share of global cobalt processing is around 80%.<\/span><\/div><\/div><\/div><\/div><\/div><\/div><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7d2972a elementor-widget__width-auto elementor-widget elementor-widget-heading\" data-id=\"7d2972a\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Local challenges<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-eb7c70c elementor-widget elementor-widget-spacer\" data-id=\"eb7c70c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6ec257a elementor-widget elementor-widget-image\" data-id=\"6ec257a\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/a2kadvisory.com\/wp-content\/uploads\/2021\/12\/81090_0-1y7f1eegz.jpg\" title=\"Kinshasa\u2019s hopes and the coming cobalt crunch\" alt=\"Kinshasa\u2019s hopes and the coming cobalt crunch\" loading=\"lazy\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-40c5aaac elementor-widget elementor-widget-text-editor\" data-id=\"40c5aaac\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div id=\"single-post\" class=\"container my-4\" data-post-id=\"1043168\"><div class=\"site-content single\"><div class=\"single\"><div class=\"post-inner-content row\"><div class=\"col-lg-8 order-0\"><p>Bracewell\u2019s Gordon Stewart<\/p><\/div><\/div><\/div><\/div><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c2f11c5 elementor-widget elementor-widget-text-editor\" data-id=\"c2f11c5\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div id=\"single-post\" class=\"container my-4\" data-post-id=\"1043168\"><div class=\"site-content single\"><div class=\"single\"><div class=\"post-inner-content row\"><div class=\"col-lg-8 order-0\"><p>\u201cIt is unsurprising that the government of DRC is pressing to retain a larger share of the value chain in battery manufacture,\u201d Bracewell partner Gordon Stewart said.<\/p><p>He drew a parallel with oil-rich African states. These have pushed investors to \u201cbuild refining capability onshore rather than exporting crude and having to import refined hydrocarbons, leaving the considerable refining value offshore and exacerbating balance of payments deficits\u201d.<\/p><p>Companies would consider how much of the process they could transfer to Congo Kinshasa and other destinations, he said. \u201cIt may be efficient to refine the minerals close to the extraction but it\u2019s unlikely to be optimal from a supply chain perspective to manufacture end-user products such as the batteries themselves, so far away from the final market.\u201d<\/p><p>There may be logistical challenges in such locations, such as a need for additional power generation investments and transportation.<\/p><p>Stewart said international companies \u201cwill also have sensitivities around ensuring adequate protection for proprietary IP and the legal regimes available to secure it\u201d.<\/p><p>There are certainly challenges in the short to medium term, Indigo Ellis, associate director at strategic advisory firm Africa Matters said.<\/p><p>\u201cDomestic manufacturing has too many hurdles to overcome to be a viable option. Immediately, the DRC government must focus on developing the infrastructure and energy necessary for future production growth, and supporting investors who are seeking to explore for other green minerals, including nickel,\u201d she said.<\/p><\/div><\/div><\/div><\/div><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-80456ff elementor-widget__width-auto elementor-widget elementor-widget-heading\" data-id=\"80456ff\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Teaming up<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6c22e60 elementor-widget elementor-widget-spacer\" data-id=\"6c22e60\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c1d0561 elementor-widget elementor-widget-text-editor\" data-id=\"c1d0561\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div id=\"single-post\" class=\"container my-4\" data-post-id=\"1043168\"><div class=\"site-content single\"><div class=\"single\"><div class=\"post-inner-content row\"><div class=\"col-lg-8 order-0\"><p>One area of potential interest would be in regional collaboration. Ellis cited SADC or some focus from the African Continental Free Trade Area (AfCFTA) could help tackle some of the Congolese hurdles.<\/p><p>\u201cHowever, Kinshasa is wedded to the idea of hosting the production site, so politically, it would be a difficult bridge to cross,\u201d she said.<\/p><div class=\"breakout\"><div class=\"breakout__content\"><span style=\"font-size: 16px;\">Such a concept finds favour at UNECA. Pedro said the production of battery precursors would need a host of additional resources, such as manganese and nickel. Gabon and South Africa are major manganese heavyweights and Madagascar and Botswana have nickel. <\/span><span style=\"font-size: 16px;\">Such co-operation would \u201cenable us to move even further up the value chain\u201d, the UNECA official said.<\/span><\/div><\/div><\/div><\/div><\/div><\/div><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-d62b60f elementor-widget__width-auto elementor-widget elementor-widget-heading\" data-id=\"d62b60f\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Legal concerns<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2cf246e elementor-widget elementor-widget-spacer\" data-id=\"2cf246e\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b056b3b elementor-widget elementor-widget-image\" data-id=\"b056b3b\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"558\" height=\"372\" src=\"https:\/\/a2kadvisory.com\/wp-content\/uploads\/2021\/12\/Congo-DRC-Kinshasa_2-1-2pdxcekwq-558x372-1.jpg\" class=\"attachment-large size-large wp-image-2057\" alt=\"Kinshasa\u2019s hopes and the coming cobalt crunch\" srcset=\"https:\/\/a2kadvisory.com\/wp-content\/uploads\/2021\/12\/Congo-DRC-Kinshasa_2-1-2pdxcekwq-558x372-1.jpg 558w, https:\/\/a2kadvisory.com\/wp-content\/uploads\/2021\/12\/Congo-DRC-Kinshasa_2-1-2pdxcekwq-558x372-1-300x200.jpg 300w, https:\/\/a2kadvisory.com\/wp-content\/uploads\/2021\/12\/Congo-DRC-Kinshasa_2-1-2pdxcekwq-558x372-1-18x12.jpg 18w\" sizes=\"(max-width: 558px) 100vw, 558px\" title=\"\">\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-f1e635d elementor-widget elementor-widget-text-editor\" data-id=\"f1e635d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div id=\"single-post\" class=\"container my-4\" data-post-id=\"1043168\"><div class=\"site-content single\"><div class=\"single\"><div class=\"post-inner-content row\"><div class=\"col-lg-8 order-0\"><p>Yellow taxi van vehicles line the streets in the Victoire district of Kinshasa, Democratic Republic of the Congo, on Friday, Jan. 11, 2019. Photographer: John Wessels\/Bloomberg<\/p><\/div><\/div><\/div><\/div><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ae2e288 elementor-widget elementor-widget-text-editor\" data-id=\"ae2e288\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div id=\"single-post\" class=\"container my-4\" data-post-id=\"1043168\"><div class=\"site-content single\"><div class=\"single\"><div class=\"post-inner-content row\"><div class=\"col-lg-8 order-0\"><p>Along the way, there are challenges around investments in Congo Kinshasa. The country has a reputation for opaque business deals.<\/p><p>The Sentry\u00a0<a href=\"https:\/\/cdn.thesentry.org\/wp-content\/uploads\/2021\/11\/TheBackchannel-TheSentry-Nov2021.pdf\" target=\"_blank\" rel=\"noopener\">issued a new report this week highlighting allegations<\/a>\u00a0around the Congolese mining sector. Based on leaked documents, it raised allegations around \u201cstate capture\u201d and links between various Kinshasa officials and Chinese companies.<\/p><p>Another aspect that people must increasingly bear in mind is that of local working conditions.<\/p><p>Stewart raised a potential tension in the push to tackle climate change. \u201cAn interesting dynamic inherent in the ESG conversation is the potential for tension between the \u201cE\u201d and the \u201cS\u201d and the \u201cG\u201d given the supply chain associated with the minerals required for the energy transition technology,\u201d he said.<\/p><div class=\"breakout\"><div class=\"breakout__content\"><span style=\"font-size: 16px;\">\u201cThe electrification of the UK\u2019s transportation improves the air quality in London and reduces the end-user carbon footprint but potentially comes at the cost of increasing damage to natural habitats and <\/span><a style=\"font-size: 16px; background-color: #ffffff;\" href=\"https:\/\/www.raid-uk.org\/sites\/default\/files\/report_road_to_ruin_evs_cobalt_workers_nov_2021.pdf\" target=\"_blank\" rel=\"noopener\">use of labour subjected to less robust health and safety and working conditions<\/a><span style=\"font-size: 16px;\">\u00a0in the countries sourcing the materials.\u201d<\/span><\/div><\/div><\/div><\/div><\/div><\/div><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-02fa1d1 elementor-widget__width-auto elementor-widget elementor-widget-heading\" data-id=\"02fa1d1\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Scrutiny<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-9ad323f elementor-widget elementor-widget-spacer\" data-id=\"9ad323f\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4bebcf5 elementor-widget elementor-widget-text-editor\" data-id=\"4bebcf5\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div id=\"single-post\" class=\"container my-4\" data-post-id=\"1043168\"><div class=\"site-content single\"><div class=\"single\"><div class=\"post-inner-content row\"><div class=\"col-lg-8 order-0\"><p>One way to tackle this is through increased consumer awareness and legislation. The Bracewell partner noted changing laws in Europe on this topic.<\/p><p>\u201cLegislatures such as in France and Germany have passed laws requiring international companies above certain thresholds to take responsibility for understanding their entire supply chain with respect to ESG and human rights considerations and thereby requiring producers to operate responsibly,\u201d he said.<\/p><p>Africa Matters\u2019 Ellis described tracing supply chains as \u201cone of the biggest threats to Congolese cobalt supply\u201d. Tackling pressure on supply chains will involve all parties working together, she said. This would include the national and regional governments, NGOs, mining companies and partners.<\/p><p>\u201cThere\u2019s no easy answer to traceability,\u201d Ellis said. \u201cEfforts made so far must encompass stakeholders from across the supply chain to have meaningful impacts on transparency.\u201d<\/p><p>Congo Kinshasa launched its Entreprise G\u00e9n\u00e9rale du Cobalt (EGC) in March with the specific aim of supporting \u201cresponsibly sourced artisanal cobalt\u201d. This small-scale or artisanal sector accounts for around 20% of Congolese cobalt production but has been often linked with child labour.<\/p><\/div><\/div><\/div><\/div><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1509247 elementor-widget__width-auto elementor-widget elementor-widget-heading\" data-id=\"1509247\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Throwing down money<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-921ac4d elementor-widget elementor-widget-spacer\" data-id=\"921ac4d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1774b4f elementor-widget elementor-widget-text-editor\" data-id=\"1774b4f\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div id=\"single-post\" class=\"container my-4\" data-post-id=\"1043168\"><div class=\"site-content single\"><div class=\"single\"><div class=\"post-inner-content row\"><div class=\"col-lg-8 order-0\"><p>Recent discussions have raised the perception that the US has fallen behind China in securing cobalt supplies.<\/p><p>The White House, in June, noted China\u2019s substantial processing volumes and limited domestic reserves. It has been able to reach this through \u201cits aggressive investment in processing capacity coupled with foreign direct investment for ores and concentrates\u201d.<\/p><div class=\"breakout\"><div class=\"breakout__content\"><span style=\"font-size: 16px;\">Much of this investment has been in Congo Kinshasa. China made a number of major deals into mining in the Central African state.<\/span><\/div><\/div><p>Congolese President Felix Tshisekedi has raised concerns about Chinese investments, launching a review earlier this year into the Sicomines project, Bloomberg reported in September. This saw China commit to an investment of around $3 billion in mining projects with another $3bn going into infrastructure.<\/p><p>It is certain that China has provided substantial support for its companies to expand into mining.<\/p><p>China Molybdenum has proved acquisitive, buying up mines such as Tenke Fungurume and Kisanfu from Freeport-McMoRan. The New York Times reported that\u00a0<a href=\"https:\/\/www.nytimes.com\/2021\/11\/20\/world\/china-congo-cobalt.html\" target=\"_blank\" rel=\"noopener\">some of the $2.65 billion paid by China Moly<\/a>\u00a0for Tenke Fungurume came from state-backed banks.<\/p><p>Some elements of this move seem similar to China\u2019s support of its national oil companies (NOCs) in the 2000s. With strong state backing, Chinese companies made significant inroads into established oil production hotspots such as Angola.<\/p><p>There were some successes but there were equally challenges in navigating politics around the world. Furthermore, Beijing\u2019s support is not always constant, as can be seen in the rise and fall of Sam Pa, a buccaneering oilman who seized opportunities before\u00a0<a href=\"https:\/\/www.ft.com\/content\/1a358d9c-725a-11e5-a129-3fcc4f641d98\" target=\"_blank\" rel=\"noopener\">vanishing from view, allegedly into Chinese detention<\/a>.<\/p><\/div><\/div><\/div><\/div><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a5d5681 elementor-widget__width-auto elementor-widget elementor-widget-heading\" data-id=\"a5d5681\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Great games<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-588f481 elementor-widget elementor-widget-spacer\" data-id=\"588f481\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ec0d9e2 elementor-widget elementor-widget-text-editor\" data-id=\"ec0d9e2\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div id=\"single-post\" class=\"container my-4\" data-post-id=\"1043168\"><div class=\"site-content single\"><div class=\"single\"><div class=\"post-inner-content row\"><div class=\"col-lg-8 order-0\"><p>Geopolitics are undoubtedly at play, Ellis said. She cautioned, though, that this was something of a simplification, which bypasses the agency of the Congolese government and people.<\/p><p>\u201cThe review of Chinese mining contracts \u2013 particularly Sicomines \u2013 is as much to do with domestic politics and a feeling that the previous administration sold the country\u2019s assets for an unfair price, as geopolitical concerns,\u201d she said.<\/p><div class=\"breakout\"><div class=\"breakout__content\"><span style=\"font-size: 16px;\">Beijing has provided some degree of support for its companies to secure overseas minerals. The US has taken a different tack. In April this year, the US DoE set out plans to reduce the use of cobalt in battery manufacturing. There have also been <\/span><a style=\"font-size: 16px; background-color: #ffffff;\" href=\"https:\/\/www.energy.gov\/sites\/default\/files\/2020\/11\/f81\/Pennsylvania%20Cobalt%20Report%20PSU%20LTI%202020_0.pdf\" target=\"_blank\" rel=\"noopener\">efforts to find domestic sources<\/a><span style=\"font-size: 16px;\">.<\/span><\/div><\/div><p>A statement said companies have \u201crecognised the risks of co-dependency\u201d. As such, they are moving to low or no cobalt in cathodes. Most research focuses on nickel, which has good energy density but challenges around capacity fade and impedance.<\/p><p>US research focuses on minimising this nickel challenge, with some early successes, the DoE has said. The government considers nickel to be less of a risky proposition than cobalt.<\/p><p>Nickel imports come from \u201ca diverse set of allied nations\u201d, with\u00a0<a href=\"https:\/\/www.whitehouse.gov\/wp-content\/uploads\/2021\/06\/100-day-supply-chain-review-report.pdf\" target=\"_blank\" rel=\"noopener\">68% coming from Canada, Norway, Australia and Finland<\/a>. The White House has expressed concerns about future supplies of nickel, though.<\/p><p>It expects Indonesia to dominate production to 2040. No doubt the US will keep a close eye on Jakarta\u2019s processing plans.<\/p><\/div><\/div><\/div><\/div><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-49d4778 elementor-widget elementor-widget-text-editor\" data-id=\"49d4778\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div id=\"single-post\" class=\"container my-4\" data-post-id=\"1043168\"><div class=\"site-content single\"><div class=\"single\"><div class=\"post-inner-content row\"><div class=\"col-lg-8 order-0\"><p>Source : <a href=\"https:\/\/www.energyvoice.com\/renewables-energy-transition\/transport\/368955\/cobalt-evs-congo-value\/\" target=\"_blank\" rel=\"noopener\">energyvoice<\/a><\/p><\/div><\/div><\/div><\/div><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>","protected":false},"excerpt":{"rendered":"<p>The energy transition is seen as marking a shift away from the \u201cbad old\u201d habits of the fossil fuel industry, but accessing the strategic resources pose their own often-overlooked problems.<\/p>","protected":false},"author":1,"featured_media":2052,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"sync_status":"","episode_type":"audio","audio_file":"","castos_file_data":"","podmotor_file_id":"","cover_image":"","cover_image_id":"","duration":"","filesize":"","filesize_raw":"","date_recorded":"","explicit":"","block":"","itunes_episode_number":"","itunes_title":"","itunes_season_number":"","itunes_episode_type":"","footnotes":""},"categories":[39,29],"tags":[],"series":[],"class_list":["post-2051","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mining","category-tech"],"episode_featured_image":"https:\/\/a2kadvisory.com\/wp-content\/uploads\/2021\/12\/1x-1-4-1-739x493-1.jpg","episode_player_image":"https:\/\/a2kadvisory.com\/wp-content\/uploads\/2023\/05\/19539922-1637334246902-6294ae5e06f42-3-scaled.jpg","download_link":"","player_link":"","audio_player":false,"episode_data":{"playerMode":"dark","subscribeUrls":{"amazon":{"key":"amazon","url":"","label":"Amazon","class":"amazon","icon":"amazon.png"},"anchor":{"key":"anchor","url":"https:\/\/anchor.fm\/a2k-advisory","label":"Anchor","class":"anchor","icon":"anchor.png"},"apple_podcasts":{"key":"apple_podcasts","url":"https:\/\/podcasts.apple.com\/us\/podcast\/the-right-advice\/id1596929049","label":"Apple 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data-secret=\"1ZAokTteIS\"><a href=\"https:\/\/a2kadvisory.com\/fr\/2021\/12\/05\/kinshasas-hopes-and-the-coming-cobalt-crunch\/\">Kinshasa\u2019s hopes and the coming cobalt crunch<\/a><\/blockquote><iframe sandbox=\"allow-scripts\" security=\"restricted\" src=\"https:\/\/a2kadvisory.com\/fr\/2021\/12\/05\/kinshasas-hopes-and-the-coming-cobalt-crunch\/embed\/#?secret=1ZAokTteIS\" width=\"500\" height=\"350\" title=\"\u00ab\u00a0Kinshasa\u2019s hopes and the coming cobalt crunch\u00a0\u00bb &#8212; A2k Advisory | Business advisory\" data-secret=\"1ZAokTteIS\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\" class=\"wp-embedded-content\"><\/iframe><script>\n\/*! 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