Ensure value chain around batteries - ZAM
GOVERNMENT needs to aggressively deliberate and ensure that a value chain around batteries includes, lithium, manganese, cobalt and copper processing is es tablished locally to be used in production.
This is according to the Zambia Association of Man ufacturers Policy Analyst, Zondwayo Duma.
Mr Duma suggested the need for Government to put in place significant incentives necessary to attract invest ment into the battery pro duction sector.
This, he said, would in turn may deny manufacturing companies the much-needed cash flow to invest in tech nology, training and other important requirements to be competitive.
“Additionally, capacity con straints in the battery value chain may be enhanced by limited financing opportu nities necessary to success fully develop the sector,” Mr Duma said in his write-up on Sparking the Growth of the Battery Sector in Zambia.
Further, according to Mr Duma, Government should also support exploration of battery metals in an attempt to ensure the availability of raw materials necessary for sustainable production.
He said it was sad that ex penditure on mineral explo ration had dropped to around US$20 million from around US$100 million ten years ago.
“Considering that miner al exploration is among the most important aspects in the mineral resources cycle, it is important that the Gov ernment should support or at least provide a conducive environment necessary for exploration.
“For instance, mining exploration has been con strained by additional charg es on payment of import du ties on imported exploration equipment and duties. Con sidering the huge costs and high risks incurred at explo ration, additional costs tend to demotivate exploration,” Mr Duma said.
He stressed the need for Government policy to be skewed towards facilitating a conducive environment for undertaking business and for the development of partner ships. For instance, he cit ed, the incentives structure should favour partnerships with local companies.