In the sprawling landscape of South Africa’s mining industry, a seismic shift is underway. The country, already rich in critical mineral resources, is poised to become a global powerhouse in the lithium-ion battery sector. This isn’t just about mining; it’s about manufacturing, value addition, and economic transformation. A recent study by the Council for Mineral Technology (Mintek) has laid out a compelling vision: South Africa could generate an additional R16-billion a year in the electrical machinery industry by assembling lithium-ion batteries for electric vehicles (EVs) and stationary storage. This isn’t a distant dream; it’s a tangible opportunity that could reshape the sector.
Mintek CEO Molefi Motuku presented a bold roadmap at the African Mining Indaba. Over the long term, South Africa has the capacity to establish a lithium-ion manufacturing facility with a production capacity of 5,000Mwh, potentially generating about R6.75-billion in revenue annually. But the benefits don’t stop at batteries. The study highlights a cascade of opportunities: 80,000 tonnes of nickel sulphate valued at R5.83-billion, six million litres of vanadium electrolyte, 5,000 tonnes of aluminium foil, 100,000 tonnes of manganese sulphate, and 20,000 tonnes of spherical graphite. These additional manufacturing opportunities are valued at about R9.77-billion a year.
This isn’t just about South Africa; it’s about Africa. The continent is rich in critical minerals, and the conversation at the Indaba has been about how to beneficiate or add value to these minerals locally. Bernard Swanepoel, the executive chairperson of the Manganese Metal Company, emphasized the need to focus on a few critical minerals with high potential. Manganese, for instance, is a key component in lithium-ion batteries, and South Africa is one of the few countries outside China producing refined manganese and manganese sulphate.
The political landscape adds another layer to this narrative. Minister of Mineral and Petroleum Resources Gwede Mantashe has been a vocal advocate for coal, arguing that it reduces unemployment and is a critical mineral for South Africa. His perspective challenges the narrow definition of critical minerals, emphasizing that they should not be limited to green technologies. Mantashe’s stance, however, contrasts sharply with that of Deputy Minister of Trade, Industry and Competition, Zuko Godlimpi, who sees critical minerals as central to the green transition. Godlimpi highlighted South Africa’s abundant critical minerals, strong automotive sector, and large local demand for stationary energy storage as a clear value proposition for foreign investors.
The European Union (EU) is taking note. Henrik Hololei, a senior adviser in the EU Commission’s Directorate-General for International Partnership, acknowledged South Africa’s significant industrial potential and expressed the EU’s interest in supporting local jobs and industry in beneficiating minerals. The EU’s aim is not to shift commodities to Europe but to foster local value addition, aligning with South Africa’s goals.
This news shapes the development of the sector in profound ways. It challenges the status quo, pushing South Africa to move up the value chain, away from being mere suppliers of primary products. It sparks debate on what constitutes a critical mineral and how to leverage these resources for economic growth. It also underscores the importance of collaboration, both within Africa and with global partners like the EU.
The path forward is not without challenges. The sector must navigate political differences, invest in technology and infrastructure, and foster partnerships. But the potential is undeniable. South Africa stands at the cusp of a transformative era, where its mineral wealth could drive not just mining, but manufacturing, innovation, and economic prosperity. The question is no longer if South Africa can do it, but how fast and how effectively it can seize this opportunity. The future of South Africa’s mining industry is not just about digging deeper; it’s about building a sustainable, value-added future.
