Ethiopia is moving forward with plans to establish an electric battery manufacturing industry. According to a report by Ethio Negari, the country is now seeking to support the increasing adoption of electric vehicles (EVs) by lowering its reliance on imports and easing foreign exchange pressures.

Industry Minister Melaku Alebel, presenting a six-month plan to Ethiopia’s House of People’s Representatives on January 23, highlighted the critical need for domestic battery production. "Electric vehicles require battery replacement after several years of utilisation," Melaku is quoted as saying, emphasising the significance of offering lower-cost batteries, as imported batteries currently range from $5,000 to $10,000 each.

Ethiopia has identified its abundant mineral reserves, including lithium and tantalum, as key enablers of its ambitions. According to the Ethiopian Minerals Survey Report, the Qenticha mine in Oromia holds an estimated 110mn tonnes of lithium ore. The government is actively engaging potential investors to establish local production facilities.

As part of its broader green energy agenda, Ethiopia has banned gasoline-powered vehicle imports, phased out fuel subsidies, and introduced restrictions on older vehicles. The shift is expected to save the nation up to $4bn annually in fuel costs.

Over 400 companies are currently involved in importing and assembling EVs. However, challenges such as limited spare parts, trained technicians, and service infrastructure—including charging stations—persist.

In response, Ethiopia has introduced guidelines requiring EV importers and assemblers to install fast-charging stations every 50 kilometres on major roads.

The push to establish a battery manufacturing industry aligns with Ethiopia's efforts to reduce its $4bn annual fuel bill and position itself as a leader in Africa's green energy transition.