Novare announces $100mn refining facility in Africa

Novare, in partnership with ReElement Technologies, has announced a groundbreaking $100 million investment in developing Sub-Saharan Africa's first battery and critical minerals manufacturing facility. The decision to establish this facility comes in response to the growing calls from African governments to beneficiate raw materials on the continent. Traditionally, minerals in Africa have been exported for refining and value addition, leading to limited beneficiation within the continent due to technological challenges, high construction costs, and environmental concerns associated with conventional refining techniques. However, Novare and ReElement Technologies aim to change this narrative by introducing innovative and environmentally friendly technology for refining and beneficiation. ReElement Technologies, in collaboration with Purdue University in the US, has developed a unique modular technology that allows for the development of refining facilities in existing buildings, making the process quicker and more cost-effective. The facilities will be strategically located near mining sites in South Africa, the Lubito Corridor in Zambia or Angola, and West Africa, particularly in Nigeria, focusing on lithium deposits. The approach of repurposing existing structures for refining facilities underscores the sustainability and efficiency of the project. The initial $100 million investment will fund the establishment of three facilities in these key regions. Critical to the success of the project is securing feedstock from mines and waste sources, as well as establishing secure offtake agreements for the refined products. ReElement Technologies' industry experience ensures a steady demand for the critical minerals and rare earths produced by the facilities. Regarding the geopolitical context, the initiative aims to enhance Africa's position in the global market by enabling local beneficiation and production of final products. By having control over the refined products, Africa can strategically navigate geopolitical risks, such as threats of tariffs, similar to China's dominance in the rare earth market. This move positions Africa to influence market dynamics and potentially counter external pressures. Despite the complexities and uncertainties in global trade dynamics, Novare remains optimistic about the economic and strategic benefits of the project. The facility construction is set to commence in the second half of the year, with a focus on efficient supply chain management and market penetration strategies. The project's shareholder profile and return profile are aligned with the vision of strengthening Africa's position in the global minerals market. Novare anticipates significant job creation and economic growth as a result of this pioneering initiative, aiming to set a precedent for local beneficiation and value addition in the continent's mining industry.