The Biden administration has rolled out an ambitious new plan to create electric vehicle battery and component manufacturing facilities in Africa, in an effort to seize an opportunity of surging demand for electric vehicles.
The US International Development Finance Corporation (DFC) has said it plans to invest up to $2 billion in creating the facilities, gasification of power plants, charging infrastructure, and battery supply chains. According to the DFC, the investments will create 60,000 jobs in the region and will help to power “up to seven million EVs” throughout Africa.
The goal of the project is to increase African countries’ access to reliable, affordable, and sustainable energy, while also creating jobs and reducing pollution levels. DFC plans to partner with African governments to support their efforts to switch to cleaner sources of power, while also providing them with expertise and resources to develop EV infrastructure.
The investments could also attract new companies to the region, bringing much-needed jobs and boosting industrial development. Additionally, it will bolster domestic EV production and allow African countries to leverage their natural resources and labor for the benefit of their industries. This could be a major boon to the region, helping to bolster economic growth throughout the continent.