Scaling lithium-ion transport solutions

Background

In Tanzania, the transport sector is heavily dependent on fossil fuels, contributing to greenhouse gas emissions, air pollution, and high operational costs. Additionally, there is limited local manufacturing of essential components such as lithium batteries and vehicle chassis, resulting in dependency on costly imports.

This e-mobility project seeks to address these challenges by introducing affordable, sustainable, and inclusive electric transportation solutions tailored to Tanzania’s needs. By reducing dependence on imported fossil fuels and increasing the integration of renewable energy in transport, the project aligns with national and global clean energy agendas.

Transformational Innovation

The project’s business model is based on three main pillars:

• Local Lithium Battery Manufacturing: Reducing reliance on expensive imports by producing cost-effective, high-quality lithium batteries within Tanzania.

• Chassis Production and Assembly: Producing durable, locally assembled chassis for electric two- and three-wheelers suited to the country’s unique road conditions.

• Charging and Battery Swapping Infrastructure: Establishing a network of clean, affordable, and accessible fast charging and battery swapping stations to serve both urban and rural populations.

On top of that, electric fast charging and battery swapping stations will reduce significantly reduce time used to fully charge electric motor cycle hence enhance operational efficiency.

The integration of locally manufactured batteries and chassis enhances energy efficiency and accelerates the shift towards sustainable transportation solution and significant reduction of fossil fuel dependency. This integrated approach will not only reduce costs for the consumers but also create jobs, foster innovation and industrialization as well as minimize environmental emissions impact.

Objectives

The main objective of the Project is to accelerate the commercialization of innovative clean energy technology in transportation sector using locally manufactured Electric Charged Lithium-Ion Batteries in Tanzania. 

Specific Objectives: 

• Lithium Batteries Manufacturing: Local manufacturing of high-performance lithium-ion batteries for electric two-wheelers and three-wheelers Motorcycles. 
• Chassis Production and Assembly: Local production and assembly of chassis for electric two wheelers and three-wheelers Motorcycles. 

• Establishment of Charging and Battery Swapping Infrastructure Network: Installation of innovative clean energy powered charging and battery swapping infrastructures (electric charging station networks) in urban and rural area.

   

Expected impact 

• Environmental: The project targets the annual production of 50,000 electric motorcycles. Based on research by the Environmental Protection Agency (EPA), this scale of production is expected to displace approximately 65,000 metric tons of fossil fuel use annually. Two- and three-wheelers typically produce an average of 130 grams of CO₂ per kilometre, equivalent to 1,300 kg of CO₂ per year per vehicle.
• Social: Electric motorcycles produced by the project are expected to reduce operating costs significantly when compared to fuel-powered alternatives. These vehicles will reduce fuel costs by more than 50% and require less frequent maintenance. The development of a wide network of fast charging and battery swapping stations will further reduce downtime, increasing usage and productivity. The project will also generate direct employment for skilled and unskilled workers, while also creating indirect employment through increased efficiency in the transport sector – a key employer of youth in Tanzania.

• Economic: The project is expected to contribute to government revenue through taxes and levies (corporate tax, VAT, employment taxes, etc.), participation in carbon credit schemes, foreign exchange savings through reduced reliance on imported fossil fuels and motorcycles, and lower freight and logistics expenses.