South Africa will allocate 1 billion rand ($54.27 million) to support local production of new energy vehicles (NEVs), batteries, and related manufacturing projects, as part of an industrial development incentive program announced by the National Treasury.
The country, home to major automotive manufacturers including Toyota, Ford Motor, Isuzu, Volkswagen, and Mercedes-Benz, is positioning itself to attract investment in electric vehicle production.
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Industry stakeholders have emphasized the need for government incentives to encourage original equipment manufacturers to expand their NEV production capabilities.
South Africa’s Electric Vehicles White Paper, released in 2023, outlined a roadmap to transition from internal combustion engine vehicles to a diversified mix that includes electric vehicles by 2035.
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In its budget review, the treasury stated that the trade and industry department, alongside the mineral resources department, plans to implement a regional critical minerals strategy to support this transition.
Critical minerals such as copper, cobalt, and lithium play a crucial role in electric vehicle battery production and the broader clean energy sector. The newly announced incentive scheme aims to increase participation in NEV manufacturing and is expected to attract 30 billion rand in private-sector investment over the medium term.
Source: Reuters
