South Africa is laying the groundwork to break out of its role as a mere exporter of raw battery minerals, with draft policy amendments and a proposed research alliance with China aimed at building a domestic battery manufacturing industry. The plan seeks to capture more of the value from critical minerals such as manganese, lithium, vanadium, nickel, and copper, which are abundant in South Africa.
The Department of Trade, Industry and Competition published draft amendments to the Automotive Production and Development Programme on 22 May 2026, proposing that critical battery minerals be added to the list of standard materials eligible for manufacturing incentives. The International Trade Administration Commission (Itac) then published a plan on 9 June to expand the automotive incentive programme to include minerals such as rare earths, iron, lithium, graphite, copper, and cobalt, sourced from the Southern African Customs Union (SACU) and SADC countries.
If fully developed, the battery value chain could contribute R43.6 billion to South Africa’s GDP annually and create roughly 4 085 direct jobs and 54 140 indirect jobs, according to a 2023 World Bank report. The country’s battery market is projected to grow from 440 MWh in 2020 to 10.4 GWh by 2030, with a revenue potential of US$1 billion.
At the 19th Pujiang Innovation Forum in Shanghai on 12 September 2026, Professor Phuti Ngoepe, Director of the Materials Modelling Centre at the University of Limpopo, detailed a new bilateral initiative. “Currently under discussion between South Africa and China is the establishment of the China–Africa Innovation Alliance on Mining and Metallurgy,” Professor Ngoepe said, according to an SAnews report from the forum. The professor said the aim is to bring national facilities in both countries together for research, pilot demonstrations, industry participation, skills development and technology transfer.
Professor Ngoepe outlined the practical steps required to turn minerals into battery components. “The minerals are processed into input materials used in manufacturing, such as manganese sulphate or copper sulphate, which are required to produce cathodes,” he said. “The next stage involves purifying these input materials to battery-grade quality.” He stressed that efficient extraction from mines underpins all downstream applications, but warned that piloting and scaling up require significant investment, often scarce in developing countries.
The collaboration between South Africa and China on mineral-processing research dates back to 2012, when a Joint Research Centre was established involving the Beijing General Research Institute of Mining and Metallurgy, the University of Cape Town, and the University of Limpopo. The latest proposal for a formal innovation alliance has so far been reported only by SAnews, based on Professor Ngoepe’s remarks. CapeFlats.co.za is seeking independent confirmation from the Department of Science, Technology and Innovation. No other official source has yet corroborated the specific bilateral initiative or the status of pilot plants for manganese sulphate and a pre-feasibility study for a 10 000-litre nickel manganese cobalt precursor production plant, which the professor referenced.
Minister Blade Nzimande, speaking at the same forum, pointed to the broader technological shift driving the urgency. “Rapidly advancing fields such as artificial intelligence, quantum technologies, biotechnology and space science, advanced materials and clean technologies were reshaping economies and national development,” Minister Nzimande said, as quoted by SAnews. These remarks have not been independently verified by other outlets. The TIPS think tank also published a green industrial policy framework for the battery value chain in July 2026, analysing opportunities in lithium-ion and vanadium redox flow batteries.
The coming weeks will be critical as the public comment period on the draft automotive incentive amendments proceeds. Unconfirmed details on the China–Africa Innovation Alliance are expected to be clarified once the Department of Science, Technology and Innovation issues a formal statement. CapeFlats.co.za will check back with the department on Monday.