Trade, Industry and Competition Deputy Minister Andrew Whitfield says he is confident that South Africa can become a components and equipment manufacturing hub for the clean technology value chain, including battery technologies for energy storage, electric mobility and materials handling.

Speaking at the opening of energy storage company Balancell’s R150-million Gigafactory in Ndabeni, Cape Town, this week, Whitfield confirmed that government was working closely with the private sector to identify opportunities to deepen the battery technology value chain and position South Africa as a manufacturing hub on the continent.

He cited a World Bank study having found that South Africa was a competitive manufacturing destination offering a compelling value proposition for companies in this sector.

To support these ambitions, South Africa had a number of policies and incentives in place that could enable the growth of this key sector, including the New Energy Vehicle White Paper, which set out objectives for this sector, Whitfield said.

“Being able to witness an investment from home-grown companies in this sector is truly inspiring. Balancell’s investment of R150-million in this factory is not only directly in line with the strategic priorities of the Government of National Unity, but also a demonstration of the innovative and entrepreneurial spirit that defines many South African businesses.

We are motivated by the company’s prospects for growth and further job creation in the coming years. The 75 existing jobs created in this facility, supporting more than 1 500 indirect jobs, is a clear indication of the multiplier effect that can be achieved by strengthening and growing the manufacturing sector,” Whitfield explained.

Moreover, he noted the importance of building a strong base of skilled South Africans. 

“Expanding industry’s partnership with leading universities and research institutions to enhance local research, development and the testing of components is critical to the industry.

Whitfield said he was encouraged about Balancell already working with the Nelson Mandela and Stellenbosch universities, as well as the Council for Scientific and Industrial Research.

He described the opening of the facility as an affirmation of the importance of building industrial capacity and working together to achieve the shared vision of South Africa being a global player in the battery value chain.

Balancell’s prior plant was limited to a 250 MWh/y capacity, with the new facility scaling that up to between 2 GWh/y and 3 GWh/y. The plant produces lithium ferro-phosphate batteries.