Critical Minerals and Industrial Transformation: Tanzania’s Prospects in Electronics and Battery Global Value Chains

Abstract

This review examines Tanzania’s prospects for moving beyond raw mineral exports and entering higher-value segments of electronics and battery-related global value chains. The analysis is motivated by the country’s endowment of critical minerals, including nickel, cobalt, graphite, lithium, and rare earth elements, which are increasingly important in battery systems and advanced manufacturing. Using a narrative review and thematic synthesis of policy, industry, and institutional sources, the paper evaluates realistic entry points for industrial upgrading. The findings suggest that Tanzania is unlikely to enter final electronics assembly in the near term. More feasible opportunities exist in upstream and midstream activities such as battery material refining, graphite processing, and rare earth separation. However, progress is constrained by gaps in refining capacity, technical skills, supplier networks, certification systems, and long-term regulatory credibility. The paper argues that gradual, capability-based industrial upgrading offers a more credible path to industrial transformation than attempts to attract major electronics firms prematurely. It contributes to debates on global value chains and industrial policy by identifying how mineral-rich late-industrializing economies can pursue selective upgrading within technologically complex supply chains.