Zambia is aggressively courting international automakers to establish electric vehicle component manufacturing plants near its copper mines, as the African nation seeks to transform its mineral wealth into higher-value products for the booming EV market.
Finance Minister Situmbeko Musokotwane said the government has been in talks with carmakers, including during a recent trip to Germany, urging them to “consider the manufacture of some of your electric-vehicle components in Zambia.”
The strategy involves shipping components to existing factories in South Africa for final assembly and global export, which Musokotwane described as “a powerful way of value addition.”
Zambia’s push comes as copper production jumped 12% in 2024 to approximately 820,670 metric tons, driven by recovery at major mines including Barrick Gold’s Lumwana operation and Vedanta Resources’ Konkola Copper Mines.
The African nation, the continent’s second-largest copper producer, has attracted over $7 billion in mining investment pledges since 2022. The most significant commitment comes from California-based KoBold Metals, backed by billionaires Bill Gates and Jeff Bezos, which plans to invest upwards of $2 billion in a major copper discovery in the Chingola region.
KoBold recently raised $537 million in funding, bringing its valuation to nearly $3 billion, and aims to begin mine development by 2027.
Chinese electric automaker BYD has already entered the Zambian market through a partnership with local firm Pilatus Electric Mobility Zambia Limited.
The government targets exceeding 1 million tons of copper annually by 2026 and reaching 3 million tons by 2031, as global demand for the metal increases due to electric vehicle adoption. The International Energy Agency warns of a potential 30% copper shortage by 2035.
President Hakainde Hichilema’s administration sees the mining boom as crucial for reducing the country’s debt burden while creating jobs in higher-value manufacturing rather than just raw material exports.
Information for this story was found via Bloomberg, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
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