Six local lithium battery and inverter manufacturers have joined forces to form the South African Battery Manufacturers Association (SABMA) in an effort to raise awareness of the country’s energy storage prowess and champion South Africa as a global production hub.

Formed officially in October by Balancell, BlueNova Energy, Creslow Energy Solutions, Freedom Won, maxwell+spark and Solar MD, SABMA aims to promote the growth of the domestic manufacturing sector and advocate for industry-friendly trade and industrial policy.

De facto chairperson and initiator of SABMA, Dr Louis Serfontein, who is also head of business development at Freedom Won, tells Engineering News that the founding members are convinced that South Africa has the resources, intellectual property and industrial capacity and capability to become a global energy storage leader.

However, he also reports that the industry is facing significant challenges currently with its survival threatened by unfair trade practices and by the fact that it is being overlooked during the public procurement of large industrial and utility-scale battery energy storage systems (BESS).

SABMA’s immediate priority, therefore, is to lobby for an update to the country’s tariff code to distinguish between the importation of battery cells, which South Africa does not currently produce, and battery systems, which it does.

Serfontein is convinced that, in time, South Africa could leverage the region’s reserves of lithium, manganese, cobalt and vanadium and its battery know-how to participate in the full battery value chain, including cell manufacturing and position Southern Africa as an exporter of high technology and not only raw materials and smaller batteries and inverters.

In the interim, however, it will need to safeguard its existing manufacturing capacity by ensuring that it is not overwhelmed by imports, he argues, with SABMA members keen to be part of a government programme that stimulates local manufacturing.

In addition, SABMA intends lobbying for a formal local-content designation for South African-manufactured batteries and inverters in the public procurement of utility-scale systems.

“While local companies have built a strong reputation in the residential market, the utility-scale and industrial battery markets remain dominated by imports,” Serfontein states.

“These systems are modular in design, so there is no reason why local batteries should be excluded as they are currently.”

Local large users, driven by local content or not, will always be better served by a locally based company, Serfontein avers.

“Projects don’t end at their commercial operation date, they start, and only local support can service and augment the technology involve to last the expected 20-plus years.

“It is thus in the interest of any large user, government and parastatal alike, to invest in local manufacturing and the associated skill and capacity development.”

He stresses that SABMA also intends marketing the capabilities of the domestic industry to consulting engineers that specify the batteries in utility projects, as well as to the engineering, procurement and construction contractors that implement BESS projects.

“Our biggest frustration is that most of the ecosystem is unaware that Africa has this high-tech ability.

“Most automatically assume that it all has to come from China whilst we have arguably been at it for the same time if not longer,” Serfontein says.

SABMA also intends working with government and private stakeholders on the implementation of the South African Renewable Energy Master Plan, which has been launched to support the industrialisation of components linked to solar, wind and battery installations.

Serfontein says SABMA already has support from the Department of Trade, Industry and Competition, including in relation to its aims of accelerating local battery manufacturing, promoting high standards, and positioning the country as a regional leader in advanced energy storage technologies.

SABMA also plans to partner with local universities, the Council for Scientific and Industrial Research, the Industrial Development Corporation, Mintek, and others, and technical colleges to expand training in electrochemistry, materials science, and advanced manufacturing.

“If successful, we believe this initiative has the potential to create employment in a future-focused sector while supporting a just energy transition in the region.”

In fact, Serfontein sees local manufacturing as the gateway to what he describes as a “real just energy transition” for Africa.

“Given its raw materials, and its long and tested history of manufacturing in South Africa, the industry can not only turn around and grow to service its rightful market share, it can also become a major supplier to the rest of the world.”