The market for electric vehicles (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 raises the question of the positioning South Africa in the value chain.
Looking ahead, the possibility of developing the domestic LIB value chain should not be overestimated: South Africa displays key pockets of excellence but not all activities in the value chain are likely viable domestically. At the same time, the importance of developing the LIB value chain should not be underestimated: an established LIB industry is instrumental in the local development of both the (renewable) energy and (electric) transport industries. In fact, provided the emphasis is put on the country’s evidenced strengths, rather than unsubstantiated aspirations, an electrifying opportunity lies ahead for South Africa.