The potential of Southern African metals and minerals is known. Namibian and Zambian copper. Mozambique’ s graphite. Zimbabwe’ s lithium. These are all crucial source materials for battery and advanced electronics production. The processed versions of these materials have become the differentiator between China ' s globally dominant automakers and the legacy automotive industry.
NEIGHBOURLY ' LOCALISATION '
Southern Africa has proven reserves and primary extraction of copper, graphite, lithium, and several other valuable metals and minerals for new energy vehicles. The region has enormous potential to add more value in the global shift from ICE to NEV vehicles. The issue is that South Africa ' s automotive production is still very light on NEVs, with only some mild hybrids and no BEVs
South Africa has independent battery producers, but there is no local automotive-grade battery powertrain production. But that could change with a new incentive regulation tabled by the government.
LOGICAL AND LUCRATIVE?
The government ' s new list of standardised materials isn ' t widely integrated into local automotive supply. These materials aren ' t like aluminium, platinum, or steel, which are used in structural elements such as stampings or forgings, and in catalytic converters. All components that South African automakers have been producing locally for decades.
Copper, cobalt, graphite, lithium, and rare earths are used in advanced electronic components, drive motors, and powertrain battery packs. These are mostly imported components, not locally made.
To capture the 50 % value localisation potential of Mozambican graphite, Namibian copper, or Zimbabwean lithium, South Africa needs to develop a local material-processing and battery-making industry. One that can match the chemistries, form factors, scale, and prices of Chinese benchmarks.
Localisation has become a major issue for South Africa ' s automotive industry, with current levels of just under 40 % well below the government ' s stated objective of 60 %. The government is now attempting to address the localisation issue and help OEMs futureproof their NEV production with a single incentive change.
The standardised materials list, which qualifies for localisation recognition, currently covers aluminium, platinum group metals, and steel. But the latest automotive strategy document now makes copper, cobalt, graphite, lithium, and rare earths candidates for localisation. If those materials are sourced from SADC countries, half of their value can be counted as localisation for South African automotive suppliers and OEMs.
THE CHEMISTRY RISK
The risks for emerging South African automotive battery projects are committing to a specific chemistry at scale, which could become dated in future. This is a lesson German car companies are learning, at great expense, as the market shifts from lithium-ion to lithium iron phosphate batteries.
An ideal outcome would be for Chinese OEMs, which produce the world ' s best automotive-grade powertrain batteries, to take the initiative and engage with the IDS ' s proposed localisation incentives for battery materials and metals. A likely candidate for this project is Chery ' s Rosslyn assembly plant, scheduled to begin vehicle production in early 2027. Chery already sells an extensive range of PHEVs in the South African market, vehicles that require reasonably large-capacity battery packs.
Chinese OEMs are renowned for the incredible speed at which they respond to legislative changes and industrial incentives. If Chery constructively interprets the IDS ' s local content allowance for regionally sourced battery materials and minerals, it could mark the start of a local automotive-grade battery powertrain supply chain.
JUNE 2026 41 WORDS IN ACTION