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In a move that could reshape its industrial landscape, Ethiopia is setting its sights on a new frontier: the local production of electric vehicle (EV) batteries.
With the right approach, Ethiopia’s venture into EV battery production could begin a new chapter in the country’s industrial development, aligning with global sustainability and technological innovation trends.
“EVs have now been introduced in our country, which is a positive step toward reducing pollution,” he notes. The potential for local EV battery production in Ethiopia is rooted in the country’s natural resources.
This could position Ethiopia as a major player in the global supply chain for EV battery materials, particularly if the government encourages exploration and foreign investment in these areas.
Internal national security concerns continue to af-fect energy infrastructure projects. Conflicts in Su-dan, South Sudan, Yemen, and Somalia are delay-ing Ethiopia’s ability to strengthen energy cooperation with neighbouring countries and ex-port electricity.
The share of so-lar in electricity generation reaches 17% in 2040. Ethiopia’s net electricity exports until 2036 will pri-marily be driven by large-scale hydropower invest-ments. However, net import of electricity is ex-pected from 2038, as the pace of demand growth in Ethiopia exceeds that of supply, in the least-cost development. See Figure 6.4.