LITHIUM, nickel, and cobalt are three of the important thing minerals used within the manufacture of digital car (EV) batteries, and all of those minerals are mined in southern Africa.
Nonetheless, the uncooked supplies are exported, and batteries are then manufactured in different international locations, with the completed product being shipped again.
This can be a important alternative missed, to not solely transfer international locations like South Africa and Namibia up the worth chain, but in addition to create better financial stability whereas bettering the fee effectiveness and carbon footprint of EVs within the area.
Mineral wealth
As the worldwide focus is shifting towards creating extra sustainable options and away from the widespread use of fossil fuels, EVs are an more and more in style transportation possibility.
EVs run off batteries, and the manufacture of those batteries is poised to change into a large trade within the close to future.
There are a number of forms of batteries at present in use, every with varied execs and cons, and every with totally different compositions, requiring totally different minerals.
Not solely are the principle three minerals (lithium, nickel, and cobalt) all mined in southern Africa, however the varied different minerals generally used are too, together with manganese, iron, graphite, aluminium, and copper.
Mining these minerals domestically, then exporting them for manufacture, earlier than re-importing them as a completed product, reduces the cost-effectiveness of EV batteries within the nation.
It additionally represents the lack of a possibility to maneuver up the worth chain and enhance the earnings and financial acquire that may be generated by means of these minerals.
If EV battery manufacturing could possibly be localised, the southern African area might capitalise on this rising market, stimulate economies, and enhance job creation, whereas on the identical time making EVs extra reasonably priced for native customers and decreasing their carbon footprint additional.
Leveraging the chance
Manufacturing EV batteries in South Africa has many advantages. Nonetheless, for this to change into a possible possibility, there have to be off-takers for the mines – in the event that they don’t have any native producers to promote to, then they’ve few choices apart from to export their items.
This may require collaboration and co-operation between the federal government and the personal sector.
The federal government must incentivise the funding required into manufacturing in addition to processing and the provision chain normally, and the personal sector should leverage these alternatives.
It would even be needed on the outset to usher in the talents required to arrange the processes, advise and seek the advice of, and from there be sure that the required expertise switch, and growth happen.
We have to create alternatives domestically, pushed by authorities incentives and grants, to take the long-term view of financial prosperity we have to drive this trade ahead.
There’s immense potential within the EV battery manufacturing house, which might additionally then feed into different areas of EV manufacturing and meeting in addition to different areas of the economic system, serving to to drive international funding and financial development in addition to job creation and sustainability by way of economic system and the atmosphere. -IOL
* Viren Sookhun is the managing director at Oxyon.
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