China’s Battery Tech Export Ban: A Wake-Up Call For Global Supply Chains, Opportunity For Nigeria

After years of supply chain bottle­necks, the market for critical min­erals hit yet another roadblock that further complicates the economics and influence behind realizing our clean en­ergy futures.

China, the world’s most important pro­ducer of essential battery materials, recently proposed new restrictions on their exports.

This proposed ban would apply to the export of battery and lithium processing technologies.

While framed as a regulatory move, this is a calculated demonstration of Beijing’s con­trol over the materials essential to securing the clean energy transition.

Why Battery Materials Matter

Batteries are the foundation of modern industry, essential to the world’s clean energy transition and even in securing the econom­ics of renewable energy.

Batteries power electric vehicles (EVs), store renewable energy, and drive everything from smart phones to power grids.

The core components of modern batteries are minerals such as lithium, cobalt, nickel, and graphite. Perhaps unsurprisingly, these minerals are mined and then heavily refined and processed before they can be used in high-performance applications.

China dominates this supply chain. Ac­cording to the International Energy Agency, China controls 60-80% of global refining and battery material processing – even though much of the raw material is mined elsewhere.

This means that countries worldwide, even those rich in minerals, remain dependent on China’s expertise, technology, and processing capabilities to manufacture batteries at scale.

The proposed export restrictions expose a harsh reality: the next industrial revolu­tion—one centered on clean energy—re­mains at the mercy of a single country.

Without access to China’s processing capa­bilities, nations risk losing critical inputs for everything from EVs to consumer electronics and even essential pharmaceuticals.

Yet while this shift creates uncertainty, it also presents an unprecedented opportunity – particularly for Africa.

Africa Can Create the Future of Bat­tery Production

As home to some of the largest reserves of critical minerals in the world, Africa has an opportunity to lead in this incredibly com­plex situation.

Critical minerals such as lithium, cobalt, and nickel are all mined in Africa, but for decades, the continent has exported these minerals as raw materials, meaning they’re missing out on the most valuable steps in the supply chain.

If African nations take essential steps now to build its refining, processing, and manu­facturing capabilities, it’s not an exaggera­tion to say they could significantly shift the economics of the global clean energy econo­my. Here are four key considerations:

Invest in Local Refining. Instead of ex­porting unprocessed minerals, African na­tions can develop refining capacity at home, capturing more value from the clean energy boom.

Rwanda’s launch of Africa’s first tantalum and niobium refinery process this model can work.

In Nigeria, Sabi is partnering with West­ern firms to establish lithium processing plants, demonstrating that local refining is not merely an ambition – it’s already hap­pening.

These moves reduce reliance on China while keeping economic benefits within Africa. Refining has challenges, and China spent decades perfecting its infrastructure, but refining battery-grade lithium is roughly 30% cheaper in China than in Australia.

The lesson is that, if Africa succeeds at lowering capital costs and expanding its infrastructure through initiatives like the Lobito Corridor, it can help boost its com­petitiveness.

ESG as a Competitive Advantage. Glob­al manufacturers increasingly demand re­sponsibly sourced, traceable, ESG-compliant minerals that are uncharacteristic of China’s methods. Most African nations, on the other hand, regulate mining production, integrate renewable energy into processing, reduce en­vironmental damage, and enforce strict labor protections.

Companies such as Sabi and others are increasingly building traceability technolo­gies that allow western companies to source more reliably from Africa. And because buy­ers are willing to pay a premium for sustain­able sourcing, African countries could have an edge if they prioritize green refining and sustainable supply chains.

Forge Global Partnerships for Tech­nology and Investment. Africa doesn’t need to replicate China’s dominance alone. Strategic partnerships with the U.S., EU, and Australia can help bridge the technology gap, and are already underway through initiatives such as the U.S.-Australia Critical Minerals Strategy. Africa must act decisively to posi­tion itself as the next major refining hub and diversity supply chains away from China.

Build a Unified African Supply Chain. China’s dominance didn’t happen by acci­dent, it was the result of decades of state-backed, vertically integrated industrial eco­systems that connected mining, refining, and manufacturing under one coordinated strategy. Africa now has a chance to do the same.

Through the African Continental Free Trade Area (AfCTA), for instance, African countries can achieve the same level of co­ordination of investment and workforce development, unlocking economies of scale and making Africa more competitive and self-reliant.

China’s proposed export restrictions are a clear reminder that supply chains are not just economic tools but instruments of geo­political power. If nations want to secure a sustainable clean energy future, they must break their dependence on a single country.

For Africa, the opportunity is clear. By investing in refining, leading on ESG, and forging global partnerships, the continent can transform itself from a raw material ex­porter into a global powerhouse in the clean energy revolution.

The world’s next generation of batteries can – and should! — be built in Africa.

Sanjeev Kulkarni, Head of Sustainability, Sabi