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South Africa Battery Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

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  • 95 Pages
  • February 2022
  • Region: South Africa
  • Mordor Intelligence
  • ID: 5529820

The South Africa battery market is expected to grow at a CAGR of more than 8% during the forecast period. The COVID-19 pandemic has significantly impacted the battery market in the country. In South Africa, the overall reduction in energy demand during the lockdown was around 30%, mostly from mining and manufacturing industries, where batteries are heavily used. Moreover, the disruptions in the energy storage projects like the well-known Bushveld Energy solar PV and vanadium battery project, also affected the battery market negatively. The South African battery market is mainly driven by two factors, the easy availability of raw materials (mainly manganese and lithium reserves), and the frequent power outages in the country which has popped up great demand for distributed power generation systems. However, the battery market in South Africa is impeded by the political scenario of the country which has already disrupted many industrial projects in the recent past.

Key Highlights

  • Lithium-ion batteries are likely to be at the forefront in South Africa during the forecast period, mainly due to its technical advantages which are widely preferred in automotive industries.
  • The steady improvement in the demand of electric vehicles(EV) in the country has the ability to become the biggest opportunity for the battery market in South Africa. The EV sales have shown an elevation in the recent picture mainly due to increase in features like driving range, which are expected to drive the demand for batteries which are used in electric cars.
  • The growing investments in the energy storage projects are likely to give a boost to the battery market in the country.

Key Market Trends

The Lithium-ion Segment to Witness Significant Growth in the Market

  • Lithium-ion batteries are heavily used in automotive and energy storage industries due to its features like high capacity (around 25-50% more than other batteries), the voltage does not drop, light-weight which makes cars lighter and uses less power, and maintenance-free batteries.
  • According to the International Energy Agency, the BEV(Battery Electric Vehicles) stock in South Africa has steadily increased, with just 34 units in 2013 to 638 units in 2020.
  • In February 2020, the Megamillion Energy Company introduced new blueprints to increase the li-ion cells production locally in South Africa. The company's pilot plant started its operations in 2020, and they are committed to boost the production to around 32GWh per year by 2028.
  • In January 2022, the uYilo kickstart fund was initiated by the South African government to foster innovation in electric vehicles sector. The RAND 1 million fund for the EV projects were a part of the National uYilo e-mobility programme launched in the country in the year 2013. The South African government hinted at positioning a local value chain for the manufacturing of lithium batteries particularly for the EV sector.
  • Such kind of developments are expected to drive the lithium-ion batteries market in the study period.

Growth in Energy Storage Projects Expected to Drive the Market

  • The South African government is keen on increasing the sources of power generation and energy security in the country, thus many energy storage projects are lined up with the joint cooperation of the state-owned and private organizations.
  • In June 2021, Scatec, the Norway-based energy company, was awarded 540MW of solar projects with 225MW / 1,140MWh of battery storage through a government tender in South Africa. The company's participation in the project was a part of the Risk Mitigation Power Procurement Programme (RMPPP), which aims at increasing the sources to dispatch energy in times of variable requirements.
  • The most preferred battery technology in energy storage projects is lithium-ion battery technology, due to its falling prices and technical advantages. Not only South Africa, but other countries too have recently witnessed a downfall in lithium battery prices. As of 2020, the global lithium battery share in energy storage projects was around 93%.
  • The South African government initiative," Renewable Energy Independent Power Producer Procurement Programme (REIPPPP)" is largely responsible for the growth of energy storage projects in the country. In November 2021, the Battery Energy Storage Systems (BESS) project was planned at various renewable energy plants owned by Eskom, the state-owned utility of South Africa, which involves development of 360MW storage system at these sites.
  • Considering such developments, the South African battery market is expected to show a remarkable progress in the near future.

Competitive Landscape

The South Africa battery market is moderately consolidated. Some of the major players in the market include Duracell Inc., Eveready (Pty) Ltd., Probe Group, Energizer Holdings Inc., and First National Battery.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

Table of Contents

1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
4.1 Introduction
4.2 Market Size & Demand Forecast in USD billion, till 2027
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.2 Restraints
4.6 Supply Chain Analysis
4.7 PESTLE Analysis
5.1 Technology
5.1.1 Li-ion Battery
5.1.2 Lead-Acid Battery
5.1.3 Nickel Battery
5.1.4 Others
5.2 Application
5.2.1 Industrial
5.2.2 Telecommunication
5.2.3 UPS
5.2.4 Energy Storage Systems(ESS)
5.2.5 Consumer Electronics
5.2.6 Automotive Industry
5.2.7 Defence
5.2.8 Others
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Duracell Inc.
6.3.2 Eveready(Pty) Ltd.
6.3.3 Probe Group
6.3.4 First National Battery
6.3.5 Saft Batteries
6.3.6 Energizer Holdings Inc.
6.3.7 Potensa (Pty) Ltd.

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Duracell Inc.
  • Eveready(Pty) Ltd.
  • Probe Group
  • First National Battery
  • Saft Batteries
  • Energizer Holdings Inc.
  • Potensa (Pty) Ltd.