SA may become key player in electric vehicle market

South Africa has a good chance of becoming a key player in the emerging global electric vehicle (EV) value chain.

This was stated by Dr Cosmas Chiteme, the Department of Science, Technology and Innovation’s Director in a speech at the 2nd E-Mobility Summit in Gqeberha this week.

The E-Mobility Summit gathered electric vehicle experts, industry leaders and specialists in alternative energy solutions at Nelson Mandela University to share valuable information about industry innovations and initiatives. Leading manufacturers such as Volvo, Tesla and Volkswagen have a number of high-value EVs on display.

EV’s comeback

Chiteme said the first EVs were produced and sold in the early 90s but had been overtaken by the combustion engine. 

However, he said electric vehicles were now making a comeback because of combustion engines’ high contribution to greenhouse gas emissions.

 “Electric car sales keep rising and could reach around 17 million in 2024, accounting for more than one in five cars sold worldwide.”

Chiteme said that the Ministry of Trade, Industry and Competition should be congratulated for publishing the White Paper on Electric Vehicles, which was intended to guide the automotive industry’s transition away from producing mostly vehicles with internal combustion engines to a dual platform that included electric vehicles by 2035.

“For our country to leverage the opportunity presented by the growth in EV demand effectively, we need to position ourselves to be part of the emerging EV global value chains. It is now clear that these value chains are inherently linked to Africa’s mineral endowment.”

ALSO READ: SA motor sector must reap opportunities from electric car demand, says Ramaphosa [VIDEO]

Essential minerals for EVs

Chitemee said South Africa and neighbouring countries were fortunate to have an abundance of minerals that fed into EV value chains, including manganese, platinum group metals, cobalt, lithium, nickel and graphite.

“These minerals were essential components of EV batteries and other electric vehicle technologies, positioning Africa as a key supplier for the growing EV market. Manganese, for example, was a critical component in lithium-ion battery cathodes, especially in lithium-nickel-manganese-cobalt batteries, which are among the most common types used for electric vehicles.”

South Africa, one of the world’s largest producers of manganese, plays a vital role in supplying this mineral. Leveraging this resource could enable African countries to capture more value in the EV supply chain, especially through local beneficiation and processing.

Producing EV’s in SA

Chiteme said that the Department of Science, Technology and Innovation has envisaged a full value chain for electric vehicles in the country, starting from the processing of mineral ores and producing battery precursors, to manufacturing the batteries themselves, building EV components, to eventually assembling and producing EVs in South Africa.

 “Government will also continue to invest in training programmes to develop the skills needed to support the e-mobility sector. We have much of the technology in place, as well as the policies to drive and support sustainable transport,” he emphasised.

At the recent SA Auto Week, President Cyril Ramaphosa further cemented government’s commitment to supporting the new EV sector.

Ramaphosa said South Africa’s local automotive sector needs to position itself to take advantage of the demand for electric vehicles, new energy vehicles and sustainable fuels.

ALSO READ: F1 is coming home: SA likely to host Grand Prix at Kyalami by 2027