While South Africa does not have any lithium-ion battery cell manufacturers, several companies are involved in battery pack assembly. Demand for all types of batteries is also expected to come from the rollout of renewable energy projects.
“Sub-Saharan Africa has all the critical battery minerals, but we are selling them for approximately $0.50 per cell, and then buying the cells back at approximately ten time the price. This does not make sense.”
In 2022, the country spent around USD 700 million on importing lithium-ion cells and batteries. Hence, owing to the above points, South Africa is expected to see significant growth in the African battery market during the forecast period.
In 2022, lithium-ion accumulators worth USD 1122.69 million were imported into the African region, an increase from USD 436.095 million in 2021, as per the ITC trade map. Lithium-ion battery systems propel the plug-in hybrid and electric vehicles.
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Battery storage costs have fallen to $65/MWh, making solar plus storage economically viable for reliable, dispatchable clean power.
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