Experts in South Africa's automotive sector generally agree that developing an electric vehicle (EV) battery manufacturing industry requires international cooperation. With its advantages in industry scale, technology, and production capacity, China is poised to become a key partner in advancing this sector in South Africa.

To support its domestic new energy industry, the South African government is revising its Automotive Production and Development Programme (APDP). It is introducing incentives—such as subsidies and tax rebates—for the production of batteries for new energy vehicles (NEVs), covering battery electric, hybrid, and fuel-cell vehicles, while also encouraging the sourcing and processing of critical minerals within the Southern African region. Concurrently, the International Trade Administration Commission of South Africa has issued new regulations to include core battery minerals—such as lithium, cobalt, manganese, graphite, and rare earths—in its support framework for processing, thereby further strengthening the industrial ecosystem. Both policy initiatives are currently open for public comment.

South Africa possesses abundant mineral resources, providing a solid foundation for building a battery supply chain. Although there are currently no local production lines for battery cells, operations for battery pack assembly and battery management system (BMS) production are already established. Supporting industries, such as manganese ore processing and battery aluminum foil manufacturing, are operating steadily, and lithium mining activities are gaining momentum. Industry insiders suggest that rather than competing directly with leading global firms, South Africa should identify its niche, leverage its resource advantages to integrate into the global battery supply chain, and utilize external investment to drive industrial upgrading.

Data from the International Energy Agency (IEA) indicates that China is a central force in the global EV and power battery industries, accounting for 75% of global EV production and 80% of global power battery production capacity; China's EV exports reached 2.5 million units in 2025. South African Deputy President Paul Mashatile has also expressed his hope that, with China's support, South Africa can be transformed into a production hub for next-generation vehicles and increase the localization of its automotive industry. Chinese automakers such as BYD and Geely have already entered the South African market, with several cost-effective EV models gaining recognition among local consumers.

Expert analysis suggests that while battery cell manufacturing is a medium-to-long-term goal for South Africa, the country can prioritize mineral refining and deep processing of raw materials in the short term. It can also establish a presence in the battery cell sector by partnering with leading international companies through models such as contract manufacturing and technology licensing. In addition to engaging with Asian enterprises—such as those from China, South Korea, and Japan—South Africa can actively pursue diverse partnerships with companies from Europe and the United States. Zimbabwe has already taken the lead by partnering with Chinese firms to export lithium salts, establishing a cooperation model that offers valuable insights.

In the vehicle manufacturing sector, automakers such as Ford, BMW, and Toyota have already commenced production of various plug-in hybrid models in South Africa. With the European Union and the United Kingdom gradually phasing out imports of internal combustion engine (ICE) vehicles—and given that European and North American markets account for 80% of South Africa's total automotive exports—developing the battery and electric vehicle industries has become a crucial strategy for local automakers to navigate this industry-wide transformation.

Industry analysts note that South African auto parts manufacturers can produce components for both ICE and new energy vehicles, allowing for a gradual industrial transition. As various powertrain technologies are expected to coexist for the foreseeable future, there remains room for growth in the supply chain for ICE vehicle components. South African industry associations are committed to driving a smooth and sustainable transition toward vehicle electrification.