Opportunities to develop the lithium-ion battery value chain in South Africa

The world of mobility is rapidly changing. The market for electric vehicle (EVs), in all their forms, is growing exponentially. Combined with technological disruptions in the energy space, the rise of EVs puts battery technologies at the core of sustainable development. Multiple technologies and chemistries, with their respective advantages and shortcomings, are competing in a market currently dominated by lithium-ion batteries (LIBs). Both South Africa’s government and industry have indicated their intention to position the local value chain as a key player in the mobility of the future. This is critical to ensure a just transition to e-mobility which would notably preserve, if not increase, job creation. Indeed, South Africa hosts a vibrant automotive manufacturing value chain. Like in the rest of the world, the domestic industry, however, produces internal combustion engine vehicles and components.

This research project explores the opportunities for South Africa to have a role in the LIB value chain. The main report and policy brief were prepared by TIPS on behalf of the Low Carbon Transport - South Africa (LCT-SA) Project. The project was initiated and funded by the United Nations Industrial Development Organisation (UNIDO). The TIPS team are: Gaylor Montmasson-Clair, Lesego Moshikaro and Lerato Monaisa. It was overseen by a Steering Committee comprised of Ashanti Mogosetsi (UNIDO), Marie Blanche Ting (UNIDO), Gerhard Fourie (Department of Trade, Industry and Competition – the dtic), Hiten Parmar (uYilo), Jenitha Badul (Department of Environment, Forestry and Fisheries – DEFF), Shahkira Parker (DEFF), Bopang Khutsoane (Department of Transport – DoT), Marleen Goudkamp (DoT), Minnesh Bipath (South African National Energy Development Institute – SANEDI), and Tebogo Snyer (SANEDI). Phillip Ninela (the dtic), Umeesha Naidoo (the dtic), and Mandisa Nkosi (UNIDO) acted as an internal technical task team.

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Media

Press release: Lithium-ion batteries offer an electrifying opportunity for South Africa

The world of mobility is rapidly changing. The market for electric vehicle (EVs), in all their forms, is growing exponentially. Combined with technological disruptions in the energy space, the rise of EVs puts battery technologies at the core of sustainable development. Multiple technologies and chemistries, with their respective advantages and shortcomings, are competing in a market currently dominated by lithium-ion batteries (LIBs).

Both South Africa’s government and industry have indicated their intention to position the local value chain as a key player in the mobility of the future. This is critical to ensure a just transition to e-mobility which would notably preserve, if not increase, job creation. Indeed, South Africa hosts a vibrant automotive manufacturing value chain. Like in the rest of the world, the domestic industry, however, produces internal combustion engine vehicles and components. This policy brief explores the opportunities for South Africa to have a role in the LIB value chain.

Background

This project comprises a main report and policy brief prepared by TIPS on behalf of the Low Carbon Transport - South Africa (LCT-SA) Project. The project was initiated and funded by the United Nations Industrial Development Organisation (UNIDO). The TIPS team are: Gaylor Montmasson-Clair, Lesego Moshikaro and Lerato Monaisa. It was overseen by a Steering Committee comprised of Ashanti Mogosetsi (UNIDO), Marie Blanche Ting (UNIDO), Gerhard Fourie (Department of Trade, Industry and Competition – the dtic), Hiten Parmar (uYilo), Jenitha Badul (Department of Environment, Forestry and Fisheries – DEFF), Shahkira Parker (DEFF), Bopang Khutsoane (Department of Transport – DoT), Marleen Goudkamp (DoT), Minnesh Bipath (South African National Energy Development Institute – SANEDI), and Tebogo Snyer (SANEDI). Phillip Ninela (the dtic), Umeesha Naidoo (the dtic), and Mandisa Nkosi (UNIDO) acted as an internal technical task team.

See Main Research Report: Opportunities to develop the lithium-ion battery value chain in South Africa.

The world of mobility is rapidly changing. The market for electric vehicle (EVs), in all their forms, is growing exponentially. Combined with technological disruptions in the energy space, the rise of EVs puts battery technologies at the core of sustainable development. Multiple technologies and chemistries, with their respective advantages and shortcomings, are competing in a market currently dominated by lithium-ion batteries (LIBs).

Both South Africa’s government and industry have indicated their intention to position the local value chain as a key player in the mobility of the future. This is critical to ensure a just transition to e-mobility which would notably preserve, if not increase, job creation. Indeed, South Africa hosts a vibrant automotive manufacturing value chain. Like in the rest of the world, the domestic industry, however, produces internal combustion engine vehicles and components. This research report explores the opportunities for South Africa to have a role in the LIB value chain.

Background

This project comprises a main report and policy brief were prepared by TIPS on behalf of the Low Carbon Transport - South Africa (LCT-SA) Project. The project was initiated and funded by the United Nations Industrial Development Organisation (UNIDO). The TIPS team are: Gaylor Montmasson-Clair, Lesego Moshikaro and Lerato Monaisa. It was overseen by a Steering Committee comprised of Ashanti Mogosetsi (UNIDO), Marie Blanche Ting (UNIDO), Gerhard Fourie (Department of Trade, Industry and Competition – the dtic), Hiten Parmar (uYilo), Jenitha Badul (Department of Environment, Forestry and Fisheries – DEFF), Shahkira Parker (DEFF), Bopang Khutsoane (Department of Transport – DoT), Marleen Goudkamp (DoT), Minnesh Bipath (South African National Energy Development Institute – SANEDI), and Tebogo Snyer (SANEDI). Phillip Ninela (the dtic), Umeesha Naidoo (the dtic), and Mandisa Nkosi (UNIDO) acted as an internal technical task team.

See Policy Brief: Opportunities to develop the lithium-ion battery value chain in South Africa.

The world of mobility is rapidly evolving worldwide. Technological developments are notably enabling the diversification of drivetrains, away from traditional internal combustion engines (ICE) towards electric and other alternative motors. While EVs still account for a marginal share of global vehicle sales, the shift is evident in leading markets. All forecasts point to an exponential growth of EVs in the coming decades.The world of mobility is rapidly evolving worldwide. Technological developments are notably enabling the diversification of drivetrains, away from traditional internal combustion engines (ICE) towards electric and other alternative motors. While EVs still account for a marginal share of global vehicle sales, the shift is evident in leading markets. All forecasts point to an exponential growth of EVs in the coming decades.

Heightened environmental regulations, linked to climate change mitigation and air quality improvement, have initiated the transition to cleaner forms of transportation. Policy impetus, such as support programmes and tight environmental targets, are now driving the market globally. In addition, favourable economics, which see EVs being increasingly cheaper to own than petroleum-based cars over their lifetime, and consumer experience, linked to the connectivity, reactivity and usage experience of the vehicles, are supporting the transformation.

South Africa lags behind this global trend. EVs remain extremely marginal, be it from an offer, demand or manufacturing perspective. As heralded by government and industry alike, it is, however, the ambition of the country to rapidly enter this space. While a coherent policy environment is lacking, the country’s Green Transport Strategy sets out government’s vision to radically grow the uptake of EVs in South Africa. As with every transition, the emergence of EVs brings disruptions, calling for the need to adequately manage the transition. In the short term, this requires supporting the development of the sector, both from a market development and manufacturing perspective, through a coherent policy framework consistent with South Africa’s domestic context. This report aims to inform this transition in the South African context.

 Press Release

Shifting to electrical vehicles in South Africa – the time is now

Media Article

The time for S Africa to shift to EV production is now, says TIPS report - Irma Venter, Engineering News 20 August 2020

The world is moving quickly towards electric vehicles (EVs). South Africa needs to prepare for this to manage the negative transition impacts and maximise the positive impacts. This policy brief explores the opportunity to develop a proactive policy framework that would shape and drive a just transition for the benefit of all South Africans.

Industry 4.0 project

This series of papers was commissioned by the Future Industrial Production Technologies Chief Directorate of the Department of Trade and Industry (the dti). This unit is focused on preparing South African industry for the fourth industrial revolution.

Saul Levin (TIPS) directed the project, and Dr Shawn Cunningham of Mesopartner was the lead researcher and author.

This paper, Technological change and sustainable mobility: An overview of global trends and South African developments, is the fourth in the series and focuses on technological change and developments in the sustainable mobility sector in South Africa.

Bhavna Deonarain was the lead author of this paper.

Other papers in the series are:

Framing the concepts that underpin discontinuous technological change, technological capability and absorptive capacity

This paper takes the form of a literature study on the topic of technological change, innovation and building technological capabilities.

World Economic Forum and the fourth industrial revolution in South Africa

This paper focuses on the fourth industrial revolution and the concept as promoted by the World Economic Forum, international consultancies, governments and multinational firms.

Mapping the meso space that enables technological change, productivity improvement and innovation in the manufacturing sector

This paper focuses on meso organisations and policies that strengthen the technological capability of the country or an industry to enable change, adaptation and economic resilience.