Transitioning SA's Petrochemical Value Chain

A lithium-ion battery (LIB) or battery pack is comprised of an assembled collection of battery modules which connect battery cells to electronic management systems that monitor and control temperature. The manufacturing of battery cells and modules is usually done separately to battery pack assembly.

For BEVs, LIB make up approximately 40 to 50% of the total vehicle cost 2, of which 70% is associated with the cost of the battery cell components. This is mainly a result of the raw materials that are required and the manufacturing of the cells themselves. Over the past decade there have been significant reductions in LIB prices – 89% since 2010, – due to increased demand for battery storage in electronics, stationary storage and EVs. China is the largest manufacturer of LIBs making up over 70% of global production.

There is great potential for fostering a battery pack manufacturing and assembly industry in South Africa in the short to medium term, with the potential for developing cell manufacturing and battery recycling systems in the future.  Battery production can be a large employer in the future, with potential to create 60,000 jobs.

South Africa is well endowed with minerals such as manganese, cobalt, iron ore and titanium, required for LIB cell manufacturing. Further, the remaining raw material requirements (bauxite, copper, graphite, lithium) are found in significant reserves in other sub-Saharan African countries.

An increase in demand for battery materials could potentially scale up existing mining and refining activity, leveraging logistical and trade advantages in the region. LIB production can also support other industries with increasing battery demand both locally and globally, such as stationary storage for power and consumer electronics.

A number of LIB consortiums have been established in South Africa, with firms developing the expertise for manufacturing specific components, parts, and systems, as well as the assembly of battery packs. There is early evidence of potential in battery pack manufacturing and assembly using imported battery cells, and a number of LIB cell developmental projects. However, the question of how competitive LIB cell manufacturing will be remains. Any development of manufacturing capacity will need to be supported by effective recycling LIB processes, which currently do not exist.