Research Article
Ethiopia's Strategic Pathway to Competitiveness in the Lithium-ion Battery Value Chain: A Comprehensive Analysis and Strategic Recommendations
Issue:
Volume 11, Issue 3, September 2026
Pages:
48-59
Received:
5 June 2026
Accepted:
6 July 2026
Published:
11 August 2026
DOI:
10.11648/j.ajere.20261103.11
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Abstract: This paper examines Ethiopia’s potential to participate in the lithium-ion battery (LIB) industry, a sector that is increasingly important for decarbonizing the country’s transportation system through the adoption of electric vehicles. As Ethiopia seeks to expand electric mobility in the coming years, the development of battery-related industries will be critical to supporting this transition. To assess the country’s readiness and competitive potential, the study employs value chain analysis alongside SWOT and Porter’s Five Forces frameworks to evaluate the strengths, weaknesses, opportunities, and threats across the upstream, midstream, and downstream segments of the LIB value chain. The findings highlight Ethiopia’s significant natural resource potential, particularly its lithium brine reserves in the Danakil Basin of the Afar Region, which are estimated at approximately 3 million tons with a recovery rate of about 50%. In addition to lithium, the country possesses other strategic battery minerals, including nickel and graphite, which could strengthen its position within the global battery supply chain. The analysis suggests that lithium brine extraction offers the most feasible entry point into the LIB value chain, as it requires comparatively lower infrastructure and capital investment than graphite and nickel processing. However, the study also identifies several challenges that must be addressed for Ethiopia to fully benefit from the growing LIB industry, including substantial investments in infrastructure, advanced technologies, skilled human resources, and industrial-scale production capabilities. Based on these findings, the paper proposes strategic recommendations to enhance Ethiopia’s competitiveness in the global lithium-ion battery market and provide policymakers, industry stakeholders, and investors with insights into the opportunities, constraints, and pathways for establishing a sustainable and competitive LIB value chain.
Abstract: This paper examines Ethiopia’s potential to participate in the lithium-ion battery (LIB) industry, a sector that is increasingly important for decarbonizing the country’s transportation system through the adoption of electric vehicles. As Ethiopia seeks to expand electric mobility in the coming years, the development of battery-related industries w...
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,
Misganu Kabeta
