e-mobility, EVs present opportunities for SADC, but action required

4th November 2020

By: Tasneem Bulbulia

Senior Contributing Editor Online

     

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The uptake of e-mobility and electric vehicles (EVs) is set to increase globally and this provides a myriad of opportunities for the Southern African Development Community (SADC) region, especially given its endowment of natural resources used in the production of the batteries used in these vehicles.

However, the SADC region is lagging in this and needs to spring into action now to capitalise on these opportunities, a panel of speakers said during think tank the South African Institute of International Affairs (Saiia) and foundation Konrad Adenauer Stiftung’s online conference on Southern Africa’s opportunity to lead in the e-mobility space, on November 4.

Saiia Futures lead Dr Deon Cloete said there were still only a small number of EVs in the SADC region and that it remains a niche market.

He said there were examples of positive developments, such as the City of Cape Town piloting the use of e-buses.

However, the region was still lagging behind the rest of the world in terms of encouraging the uptake of EVs, owing to a strong belief that jobs in the internal combustion engine automotive industry needed to be protected for as long as possible, he said.

Cloete noted that there needed to be public−private sector collaboration to roll out EV infrastructure; and that SADC Green Transport targets and polices need to be ratified. He said the latter would incentivise e-mobility in the region.

uYilo e-Mobility Programme manager Edem Foli said the EV market was poised to grow after the pandemic, which presented a major opportunity for the SADC region in terms of the lithium battery manufacturing value chain.

She explained that this value chain entailed the mining of raw materials, raw material beneficiation, cell components manufacturing, cell manufacturing, battery back assembly, application use and recycling.

However, she said that, currently, the majority of activities for SADC countries were taking place at the start of the value chain, with most in the mining of raw materials.

There are some member States doing a little bit of work further along the value chain process, such as South Africa, which is beginning to research and develop initiatives in raw material beneficiation, cell components manufacturing, call manufacturing and recycling, noted Foli.

Moreover, other member States are assembling lithium battery packs; however, they are importing the cells.

There are also signs of EVs gaining popularity in the SADC region.

However, there needs to be much more investment and uptake, as there is considerable value for SADC along the entire value chain, which needs to be unlocked through public-private partnerships, and coherent policy, emphasised Foli.

She said EVs in the region were currently all imported, with local manufacturers not having any incentives to manufacture them locally, as well as a lack of coherent policy to fast-track the uptake of these.

She also pointed to a lack of infrastructure across the region, for example, a lack of charging points. While she noted that South Africa had about 270 public charging points, most other SADC members States had very few.

Moreover, a major challenge for the region to contend with was the lack of reliable electricity supply to charge EVs.

Further, Foli mentioned a lack of consumer awareness around EVs at present.

She noted that a lack of adoption of EVs in the SADC had a knock-on effect on the earlier stages of the value chain, as there was currently no urgency to invest in or develop expertise in lithium, if there is no market for it locally.

However, she noted that global lithium battery demand would grow considerably to 2030.

Therefore, she emphasised that it was time to invest in developing the entire value chain, as demand would tick up, and the region had the raw material to support that growth.

Foli said that there was a window of opportunity over the next five years for SADC member States to collaborate on initiatives and interventions that would enable them to competitively participate in value-added manufacturing across the entire lithium battery manufacturing value chain.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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