South Africa opens lithium battery

Which countries supply lithium batteries to South Africa?

China, having established battery storage manufacturing facilities, has been the primary supplier of lithium cells and batteries to South Africa between 2019 and 2022. South Africa’s transition from coal-dominated electricity generation to renewable energy sources such as wind and solar presents an opportunity to increase battery pack imports.

Does South Africa have a battery storage sector?

South Africa’s vast reserves of manganese and vanadium position the country to take on a more prominent role in the battery storage sector. Manganese, an essential element in lithium-ion batteries used for powering electric vehicles (EVs) and renewable energy grids, is particularly significant. Have you read?

Why is South Africa preparing for a battery boom?

Battery boom fuels demand for critical minerals. South Africa's electricity supply roadmap, the (2019 Integrated Resource Plan) has set a target for a battery storage capacity of between 2GW and 6.6GW by 2032. This aligns with the global push for a 25% annual growth in battery storage to reach 1500 GW by 2030, according to IEA.

Can South Africa produce a battery?

The Netherlands is the primary destination for South Africa’s ferro-alloys and ferro-vanadium exports, while South Korea is a growing market for these products. South Africa lacks the manufacturing capabilities for the production of battery storage. It remains to be proven whether such an activity would be competitive domestically, says Nikomarov.

How much lithium ion does South Africa Import?

According to Gaylor Montmasson-Clair, a senior economist at Trade and Industrial Policy Strategy (TIPS). South Africa imported $1.1 billion (4.4 GWh) of lithium-ion cells and batteries in the first six months of 2023 which is mostly imported from China.

Does South Africa have a battery supply chain?

Europe, the US and Korea each hold 10% or less of the supply chain for some battery metals and cells, according to a report by the International Energy Agency (IEA) South Africa's role in this landscape is primarily as an exporter of raw materials. Only about 10% of the country’s vanadium is used domestically, the rest is exported, says Nikomarov.