Namibia's government has implemented a ban on the export of unprocessed lithium and other rare earth minerals in order to take advantage of the growing demand for metals used in renewable energy technology. This strategic decision is in line with Namibia's goal to become a major player in the battery metals market as global interest in renewable energy sources continues to rise. The country's move follows a similar trend observed in Zimbabwe, where measures have been taken to promote local production of battery-grade minerals and reduce reliance on exports.
On Thursday, the Namibian government announced the prohibition of exporting critical minerals such as unprocessed crushed lithium ore, cobalt, manganese, graphite, and rare earth minerals. These minerals are essential for various renewable energy applications, including energy storage and the production of magnets for electric vehicles and wind turbines. Namibia, being abundant in both lithium and rare earth minerals like dysprosium and terbium, is well-positioned to capitalize on the growing demand for these resources.
The country's Ministry of Information clarified that only trace amounts of the listed minerals would be permitted for export with the approval of the mines minister. While Namibia is already a significant supplier of uranium and gem-quality diamonds, the increasing global shift towards renewable energy sources has sparked interest in its battery metals.
In line with the European Union's efforts to reduce dependence on China for critical minerals, Namibia and the EU forged an agreement last year for the supply of rare earth minerals. This highlights the country's potential to cater to the demand for these resources from international markets.
Notably, Australian-listed companies such as Prospect Resources (PSC.AX), Arcadia Minerals (AM7.AX), and Askari Metals (AS2.AX) are actively engaged in important mining projects in Namibia. Reuters, the American news agency, provided this information. Celsius Resources (CLA.AX) is involved in developing cobalt deposits, while Namibia Critical Metals (NMI.V) focuses on rare earth minerals in Namibia.
Zimbabwe, another African lithium producer, took similar measures by banning the export of lithium ore in December, allowing only the shipment of concentrates. The country intends to encourage its lithium miners to produce battery-grade lithium domestically and may potentially impose a tax on lithium concentrate exports in the future.