South Africa is preparing to establish lithium-iron phosphate, or LFP, battery cell manufacturing in partnership with Chinese companies to meet rising demand for renewable energy.

Irshaad Kathrada, chief executive officer of Localisation Support Fund, a South African NGO, said the country and its neighbors, including Zimbabwe and Mozambique, have abundant resources that can support the industry's development. China's experience in battery manufacturing makes it a key partner in establishing the sector, he said.

While South Africa has an adequate labor force, the country still needs to attract skilled professionals from abroad, as some local professionals have migrated in search of greener pastures, he said.

Huge potential

Kathrada also highlighted the potential of the African Continental Free Trade Area to boost demand for battery storage solutions across Africa and in Europe and other markets.

LFP battery cells are widely used in the renewable energy industry, including electric vehicles and energy storage systems.

Heather Orton, head of strategy and innovation at EY-Parthenon Africa, said establishing a gigafactory with an annual capacity of 5 to 10 gigawatt-hours is both operationally and economically viable.

"Our study indicates that a 5-to 10 — GWh LFP gigafactory in South Africa is technically and commercially feasible under the scenarios assessed, with enough demand to support several local manufacturers and anchor a new battery value chain over the next decade," Orton said.

The global battery cell market is projected to grow from 1.6 terawatt-hours in 2024 to 4.9 TWh in 2034, with demand in southern Africa projected to reach 55 GWh, she said. Setting up battery storage facilities could take up to three years, including about a year for legislative approvals, she added.

Such projects would create jobs and contribute to energy security, she said.

Kgashane Mohale, a senior industrial specialist at the Industrial Development Corporation of South Africa, a national development finance institution, said the agency is ready to act as a "catalyst" by funding the establishment of such facilities.

South Africa is open to partnering with Chinese companies with experience in battery manufacturing, he said.

Deshan Naidoo, founder and managing director of Afrivolt, a South African renewable energy company, said the country has a strong opportunity to build a battery manufacturing plant and should learn from China's investment in research and development, supported by policies and incentives.

"You cannot ignore China, as it is the biggest in renewable energy. They made some policy (measures) and incentives to establish battery manufacturing," Naidoo said. "We need to work with the Chinese to bridge the skills gap. We are ready to partner with the Chinese on this journey."

Such cooperation would facilitate skill transfer and strengthen local expertise, he said.

Sean Jobson, a professional engineering technologist at the University of Johannesburg, said the institution is willing to collaborate with stakeholders interested in establishing battery manufacturing in the country.

The university has conducted research in battery technology and renewable energy, he said.

The writer is a freelance journalist for China Daily.