THE ELECTRIC VEHICLE ECOSYSTEM AND ASSOCIATED VALUE CHAINS

The South African EV ecosystem is currently nascent and dominated by private sector activity, with limited local commercial production of battery cells and a reliance on imported components. While the country possesses significant reserves of battery minerals like manganese, it lacks extensive beneficiation capacity. The automotive sector, a major GDP contributor, is pivoting toward EVs to maintain competitiveness in export markets that are phasing out internal combustion engine (ICE) vehicles. Key barriers to adoption include high upfront costs, inadequate charging infrastructure, and a chronic shortage of technical skills. The report recommends that the City of Cape Town intervene through targeted incentives, procurement of EV fleets, and the development of charging infrastructure and skills training to stimulate a viable local value chain.

• The automotive manufacturing sector is a critical economic driver in South Africa, contributing 6.4% of GDP and R201.7 billion in export revenues in 2019, with 64% of locally produced vehicles exported to markets including the EU, Japan, Australia, and the US.
• South African automotive OEMs are pivoting to EV manufacturing to future-proof their businesses as major export markets announce bans on ICE vehicle importations, some as early as 2025.
• South Africa has significant mineral reserves essential for batteries, holding approximately 78% of the world's manganese, yet it lacks commercial battery cell production and relies on assembling imported cells.
• The domestic EV market is hindered by high costs, with all available models priced above R450,000, and a lack of tailored financing schemes from banks.
• Public charging infrastructure is limited, with approximately 280 publicly accessible stations and 350 connectors, primarily concentrated in Cape Town, Durban, and Johannesburg.
• A 2020 survey of over 3,000 car buyers indicated that 68% would want to own an EV in the future, but 61% cited the unavailability of public and home charging infrastructure as a primary barrier.
• The transition to EVs is expected to negatively impact the margins of powertrain suppliers and dealers due to the simplicity of EVs, which have fewer moving parts and require less maintenance than ICE vehicles.
• There is an acute shortage of technical skills in the automotive industry, which is a major constraint for OEMs looking to invest in new production capacity.
• Hydrogen fuel cell electric vehicles (HFCEVs) are deemed economically unfeasible for single-occupancy vehicles in South Africa due to high costs and lack of infrastructure, but are recommended for specific use cases like heavy-duty trucks and underground mining.
• South Africa currently lacks commercial plants for recycling lithium-ion batteries, leading to batteries being stockpiled or shipped abroad despite 2020 regulations banning electronic waste in landfills.

APA

Chege, W. W. (2021). THE ELECTRIC VEHICLE ECOSYSTEM AND ASSOCIATED VALUE CHAINS. GreenCape. https://greencape.co.za/assets/The-Electric-Vehicle-Ecosystem-and-Associated-Value-Chains.pdf

Chicago

Chege, Wilberforce W. THE ELECTRIC VEHICLE ECOSYSTEM AND ASSOCIATED VALUE CHAINS. GreenCape, 2021. https://greencape.co.za/assets/The-Electric-Vehicle-Ecosystem-and-Associated-Value-Chains.pdf.

Wikipedia

{{cite report |last1=Chege |first1=Wilberforce W. |title=THE ELECTRIC VEHICLE ECOSYSTEM AND ASSOCIATED VALUE CHAINS |publisher=GreenCape |date=2021 |url=https://greencape.co.za/assets/The-Electric-Vehicle-Ecosystem-and-Associated-Value-Chains.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{chege2021electric, author = {Chege, Wilberforce W.}, title = {{THE ELECTRIC VEHICLE ECOSYSTEM AND ASSOCIATED VALUE CHAINS}}, institution = {GreenCape}, year = {2021}, url = {https://greencape.co.za/assets/The-Electric-Vehicle-Ecosystem-and-Associated-Value-Chains.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }