THE ELECTRIC VEHICLE ECOSYSTEM AND ASSOCIATED VALUE CHAINS - The role the City of Cape Town can play in the Electric Vehicle Ecosystem
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THE ELECTRIC VEHICLE ECOSYSTEM AND ASSOCIATED VALUE CHAINS The role the City of Cape Town can play in the Electric Vehicle Ecosystem
GreenCape
GreenCape is a non-profit organisation that works at the interface of
business, government, and academia to identify and remove barriers
to economically viable green economy infrastructure solutions.
Working in developing countries, GreenCape catalyses the replication
and large-scale uptake of these solutions to enable each country and
its citizens to prosper.
Acknowledgements
We thank Wilberforce W. Chege for the time and effort that he has put
into compiling this report.
Disclaimer
While every attempt has been made to ensure that the information
published in this report is accurate, no responsibility is accepted for
any loss or damage to any person or entity relying on any of the
information contained in this report.
Copyright © GreenCape 2021
Cape Town, South Africa
Author: Wilberforce W. Chege
Editorial and review: Jack Radmore, Cilnette Pienaar,
and Nicholas Fordyce
Layout and design: Tamlin Lockhart
The Electric Vehicle Ecosystem and associated Value Chains | 3
Contents
5.3. Charging technologies 81
6. Energy supply and the electricity grid 84
1. Executive Summary 1
7. Financing 90
2. Introduction 9
8. Research & Development Network 97
3. The local automotive manufacturing industry – Localising the EV value chain 19
8.1. PAVE | PTRC-ZA project at the Salesian Institute – Cape Town, Western Cape 101
3.1. Automotive manufacturing value chain 21
8.2. uYilo Electric Mobility Programme – Port Elizabeth, Eastern Cape 103
3.2. Local automotive OEMs in South Africa 24
8.3. Retail Motor Industry Organisation – Johannesburg, Gauteng 105
3.3. South Africa’s vehicle export markets 27
9. Electric vehicle consumer demand – the end-user 107
3.4. Existing local bus manufacturing for domestic and export markets 33
3.5. Ancillary services, automotive components, and other adjacent markets 34 10. Conclusion 111
3.6. EV use in construction, retail, and underground mining 39 11. Recommendations for the City of Cape Town 115
4. Battery and cell manufacturing and the mining of battery minerals 40 11.1. Impact areas in automotive manufacturing 121
4.1. Battery energy storage system value chain 43 11.2. Impact areas in developing the local battery value chain –
battery manufacturing, recycling, and mining 123
4.2. Composition of the lithium-ion battery cell 46
11.3. Impact areas in standardisation 124
4.3. Mineral demand from electric mobility 47
11.4. Impact areas in the charging infrastructure landscape 125
4.4. Battery demand from the renewable energy sector 48
11.5. Impact areas in energy provision and the electricity grid 125
4.5. Geographical concentration of battery minerals 50
11.6. Impact areas in the local research and development network 126
4.6. Mineral beneficiation in South Africa 52
11.7. Impact areas in driving consumer demand for EVs 127
4.7. Lithium-ion battery and cell manufacturing 54
4.8. Lithium-ion battery chemistries 55 12. References 129
4.8.1. Nickel-dominant chemistries 55 13. Appendix 135
4.8.2. Cobalt 57
4.8.3. Lithium 58
4.8.4. Copper 60
4.9. Hydrogen fuel cell electric vehicles 62
4.9.1. Hydrogen (H2) 63
4.9.2. Platinum 64
4.10. Battery recycling and the circular economy 67
5. Charging Infrastructure 74
5.1. Charging infrastructure value chain 75
5.2. Business models in the local EV charging landscape 77
5.2.1. Asset light model 77
5.2.2. Asset heavy model 80
5.2.3. Battery swapping as a service 80
i | The Electric Vehicle Ecosystem and associated Value Chains The Electric Vehicle Ecosystem and associated Value Chains | ii
List of figures Figure 32: Jaguar’s charge point operated by GridCars at Ilanga Mall, Nelspruit 78
Figure 33: CPO business model 79
Figure 34: The battery swap concept 81
Figure 1: The Electric Vehicles Ecosystem 13 Figure 35: South Africa’s electricity shortage 87
Figure 2: Global increase and projections of EV sales 15 Figure 36: Main barriers for EV uptake among consumers. 109
Figure 3: South Africa’s total final consumption (TFC) of energy by sector, 1990-2018 17
Figure 4: Change in demand of each energy source between 2019 and 2020 18
Figure 5: The automotive manufacturing value chain 21
Figure 6: The electric vehicles manufacturing value chain 22
List of tables
Table 1: Total vehicle sales in South Africa between 2010 and 2019 16
Figure 7: The main automotive manufacturing hubs in South Africa 25
Table 2: South Africa’s percentage share of global vehicle production (2013-2019) 23
Figure 8: The Battery Energy Storage System (BESS) value chain 43
Table 3: The main vehicle OEMs in South Africa 24
Figure 9: Total global storage demand per sector 45
Table 4: Market share of the top automotive OEMs in South Africa 26
Figure 10: Parts of a lithium-ion battery 46
Table 5: Countries phasing out fossil fuel vehicles in the coming years. 27
Figure 11: Minerals used in EVs and the conventional ICE vehicle. 47
Table 6: Major global OEMs that have announced exits from the ICE market 28
Figure 12: Mineral use between ICE and EVs in kg per vehicle 48
Table 7: Summary of recent EV developments and medium-term plans 28
Figure 13: The minerals used in select clean energy technologies. 50
Table 8: Vehicle components manufactured in South Africa in 2018 35
Figure 14: Top 3 producing countries of select minerals and fossil fuels in 2019. 51
Table 9: The impact of the transition from ICE to EV manufacturing on major
Figure 15: Projections of future major sources of battery minerals 52
automotive components 36
Figure 16: LIB price/kWh over time 54
Table 10: Breakdown of the size of the vehicle classes in South Africa as of 31 December
Figure 17: Lithium-ion battery chemistry types (percentage of lithium in each chemistry)55 2020, excluding non-self-propelled vehicles such as caravans and trailers. 37
Figure 18: Cathode-active materials in lithium-ion batteries 56 Table 11: Breakdown of the size of vehicle classes in the Western Cape as of 31 December
Figure 19: Global cobalt reserves as of September 2020 57 2020, excluding non-self-propelled vehicles such as caravans and trailers. 38
Figure 20: Lithium-ion battery cell capacities by application 58 Table 12: Lithium-ion battery applications 49
Figure 21: LIB supply chain rankings in 2025 and projections for 2025 60 Table 13: Critical mineral requirements for different clean energy technologies,
and their relative importance 49
Figure 22: Electric vehicle copper demand forecasts 61
Table 14: Availability of raw materials in the region for LIB production 53
Figure 23: The hydrogen fuel cell 63
Table 15: Top lithium producing countries (2019) 59
Figure 24: The hydrogen extraction processes 64
Table 16: Copper content of different vehicle types 61
Figure 25: The circular economy 67
Table 17: The top highest-grade open-pit copper mining operations 62
Figure 26: The recycling process for batteries 67
Table 18: Comparison of the various electric bus options on a set of parameters 66
Figure 27: Average GHG intensity to produce select minerals. 69
Table 19: Mining companies’ net CO2 emission reductions pledges (%) 69
Figure 28: The end-of-life recycling rates for select minerals. 70
Table 20: OEMs, industry and distributors’ DC charging technology 82
Figure 29: The existing and announced LIB recycling capacity coming online
by 2021 per region. 71 Table 21: Renewable energy value chain in South Africa 85
Figure 30: The charging infrastructure value chain 75 Table 22: Electricity capacity in 2020 86
Figure 31: Publicly available charging infrastructure stations in South Africa 76 Table 23: Solar PV energy value chain in South Africa 88
iii | The Electric Vehicle Ecosystem and associated Value Chains The Electric Vehicle Ecosystem and associated Value Chains | iv
Table 24: Wind energy value chain in South Africa 89 DMRE Department of Mineral Resources and Energy
Table 25: The cost of importing a Tesla Model X from the United Kingdom to DoE Department of Energy
South Africa in 2021 93 DoT Department of Transport
DRC Democratic Republic of Congo
Table 26: The funding landscape in South Africa 94 DST Department of Science and Technology
Table 27: The local battery research and development network 100 DTI Department of Trade and Industry
DTIC Department of Trade, Industry and Competition
Table 28: Local skills development stakeholders 100
E-buses Electric buses
Table 29: List of uYilo’s national awareness, capacity, and testing projects 104 EC Eastern Cape
EG Embedded Generation
Table 30: How much EV consumers are willing to spend in purchasing an EV 110
E-mobility Electric mobility
Table 31: Opportunity rating matrix 117 eNaTIS Electronic national administration traffic information system
EPR Extended Producer Responsibility
Table 32: Summary: Intervention breakdown 118
ES Energy storage
ESG Environmental, social, and governance
List of abbreviations and acronyms EU European Union
EV Electric vehicle
EVSE Electric Vehicle Charging Service Equipment
AASA Automobile Association of South Africa FCEV Fuel Cell Electric Vehicle
AC Alternating current FDI Foreign Direct Investment
AEM Automotive Export Manual GERPISA Le Réseau International de l’Automobile (International
AfCFTA African Continental Free Trade Area Automobile Network)
AIS Automotive Investment Scheme GDP Gross domestic product
Al Aluminium GHG Greenhouse gases
APDP Automotive Production and Development Programme G20 Group of Twenty
ARA Automotive Remanufacturers’ Association GMA Gautrain Management Agency
AU African Union GP Gauteng Province
AV Autonomous vehicles GTS Green Transport Strategy
BEV Battery electric vehicle GW Gigawatts
BFP Basic fuel price H2 Hydrogen
BMS Battery management system HCV Heavy commercial vehicles
BnB Bed and Breakfast HEV Hybrid electric vehicle
BRT Bus Rapid Transit System HFCEV Hydrogen Fuel Cell Electric Vehicle
C Carbon HVAC Heating, ventilation, and air conditioning
CaF2 Calcium Fluoride ICA International Copper Association
CBT Carbon Tax ICCU Integrated Charging Control Unit
CCA Customs controlled area ICE Internal combustion engine
CCS Combined Charging System IDC Industrial Development Corporation
CO2 Carbon dioxide IDZ Industrial Development Zone
CoCT/CCT City of Cape Town IEA International Energy Agency
CPD Continuous Professional Development IFC international Finance Corporation
CPO Charge point operator IGO Inter-governmental Organisation
CPUT Cape Peninsula University of Technology IPP Independent Power Producer
CSIR Council for Scientific and Industrial Research ITAC International Trade Administration Commission
CSP Concentrating Solar Power Km/a Kilometres per annum
Cu Copper KWh Kilowatt-hour
DC Direct current KZN KwaZulu-Natal
DEFF Department of Environment, Forestry and Fisheries LCO Lithium cobalt oxide
DG Distributed Generation LCV Light commercial vehicles
DMEA Department of Mineral and Energy Affairs LFP Lithium iron phosphate
v | The Electric Vehicle Ecosystem and associated Value Chains The Electric Vehicle Ecosystem and associated Value Chains | vi
Li Lithium SAMBRA South African Motor Body Repairers Association
LIB Lithium-ion battery SAPRA South African Petroleum Retailers Association
LMO Lithium Manganese Oxide SAVABA South African Vehicle and bodybuilders’ Association
LTO Lithium Titanate SEZ Special Economic Zone
MaaS Mobility-as-a-Service SISR SADC Industrialisation Strategy and Roadmap
MBT Minibus taxi SOV Single occupancy vehicle
MERSETA Manufacturing, Engineering and Related Services Sector SSA Sub-Saharan Africa
Education and Training Authority SSEG Small scale embedded generation
MCV Medium commercial vehicles STRAPSA Shifting the Transport Paradigm for South Africa
MHEV Mild hybrid EV TBC To be confirmed
MIR Market Intelligence Report TEPA Tyre, Equipment, Parts Association
MIWA Motor Industry Workshop Association Ti Titanium
Mn Manganese TIA Technology Innovation Agency
NAAMSA National Association of Automobile Manufacturers of South Africa UCT University of Cape Town
NADA National Automobile Dealers’ Association UNIDO United Nations Industrial Development Organization
NCA Lithium nickel cobalt aluminium oxide US/USA United States of America
NEC Nippon Electric Company USGS United States Geological Survey
NEV New energy vehicle UWC University of the Western Cape
NHTS National Household Transport Survey V2G Vehicle to Grid
NMBLP Nelson Mandela Bay Logistics Park V2H Vehicle to Home
NMC Nickel manganese cobalt oxide V2L Vehicle to Load
NPI Nickel pig iron V2X Vehicle-to-everything
OCGT Open Cycle Gas Turbine VAA Vehicle assembly allowance
OEM Original equipment manufacturer VALA Volume assembly localisation allowance
OPEC Organization of the Petroleum Exporting Countries VTA Vehicle Testing Association
PAYD Pay as You Drive WC Western Cape
PAYS Pay as You Save XHCV Extra-heavy Commercial Vehicle
PGM Platinum Group Metal
PHEV Plug-in hybrid electric vehicle
PI Production incentives
PJ/a Petajoules per annum Exchange rate conversion
PM Particulate matter
PPA Power purchase agreement An exchange rate of 1 USD = R15 was used
PPP Public Private Partnership
PPPFA Preferential Procurement Policy Framework Act
PRCC Production Rebate Credit Certificate
PTRC Porsche Training and Recruitment Centre
PV Photovoltaic
RAF Road Accident Fund
R&D Research and development
RE Renewable energy
REE Rare earth elements
RII Regulations, Infrastructure, and Innovation
REIPPP Renewable Energy Independent Power Producer Procurement
RMI Retail Motor Industry Organisation
RMPPP Risk Mitigation Power Procurement Programme
SA / ZA South Africa
SAAM South African Automotive Masterplan
SABS South African Bureau of Standards
SADC Southern African Development Community
vii | The Electric Vehicle Ecosystem and associated Value Chains The Electric Vehicle Ecosystem and associated Value Chains | viii
1 EXECUTIVE
SUMMARY
The South African electric vehicle ecosystem includes
a network of organisations – suppliers, distributors,
customers, competitors, government agencies, NGOs,
IGOs, academia, research, and training institutions –
involved through both competition and cooperation. A
variety of key players are competing to shape the nascent
South African EV market, drawn from both the public and
private sectors. The private actors are, however, currently
more active, and dominant in the making of the ecosystem
and its operation in its current form. The exact dynamics
of the industry are still emerging, and the timing of key
tipping points remain largely unknown.
©Pxhere
1 | The Electric Vehicle Ecosystem and associated Value Chains The Electric Vehicle Ecosystem and associated Value Chains | 2
The electric vehicle ecosystem has been be a significant increase in the demand has until now been driving the roll-out of have emerged in this landscape. The
segmented into the following categories; for minerals. The EV battery market is charging infrastructure in the country with mineral needs however vary among the
currently highly geographically limited support from the government, and different clean energy technologies; with
a) Automotive manufacturing concentrated and is dominated by Asian there are now about 280 publicly the transition to renewables, there would
countries and companies, with China, accessible charging stations, and 350 be a significant increase in the demand
The automotive manufacturing sector Japan and South Korea providing for up connectors since some of the charge for minerals.
is a key player in the country’s economic to 97% of the current global LIB demand, points have two connectors. Only 11 of
landscape, contributing 6.4% of the gross however, this dominance is expected to these have the CHAdeMO connector type e) Financing
domestic product (GDP), R201,7 billion in reduce in the coming years as other and are meant to provide charging to the
export revenues, and 27.6% of players invest in this market. 91 Nissan Leaf EVs, which are the only EVs There are currently no specially tailored
manufacturing output in 2019. Total in South Africa that utilise the CHAdeMO EV financing schemes in the South African
revenue from this sector was more than The uptake of EVs and the growth of the connector standard. The rest are market, with banks and other financial
R500 billion (US$35.6 billion) in 2019, with distributed generation market are Combined Charging System (CCS) institutions not yet providing vehicle
the industry employing up to 900 000 projected to drive battery growth in the connector type stations. There is however financing to EVs. All the EV models
people directly and indirectly – including coming years, and they have already limited geographical coverage of charging currently available in the South African
downstream in wholesale, retail trade, and surpassed portable electronics as the stations in the country, with strategic market however cost more than R450 000,
maintenance. Because of South Africa’s main source of battery demand. However, placement on the major inter-city/inter- which is out of reach of most vehicle
competitiveness in automotive production, because of the limited EV uptake in the provincial highways and national roads. buyers in the country. Several local banks,
which is mostly due to the relatively low country presently, the LIB industry has yet including ABSA, Nedbank Group, FirstRand
labour costs, the country already has an to take off. South Africa currently has no Three business models have emerged in Limited, and First National Bank (FNB)
existing vehicle export market where up to local commercial production of battery this space: have recently announced new policies to
64% of the vehicles produced locally are cells and relies on assembling imported suspend financing of future fossil fuel and
exported to the European Union, Japan, cells. This is likely to continue being the i. Asset light model carbon-intensive projects to improve their
Australia, the United States, and 131 other case until significant scale is reached, ii. Asset heavy model environmental, social, and governance
destinations. Several international vehicle providing demand and a business case iii. Battery swapping as a Service mode (ESG) credentials. This could be the
original equipment manufacturers (OEMs) for LIBs. An increase in EV demand and watershed moment for the financing of
operate in the country, serving both the uptake would improve the business case d) Energy supply and the e-mobility in the country.
domestic and export markets. These for local battery manufacturing because electricity grid
vehicle OEMs are now looking to pivot of the inter-dependency and symbiosis f) Research & Development
from primarily manufacturing internal between the two industries. A prime challenge to the EV ecosystem, Network
combustion engine vehicles to electric from the mining of lithium-ion battery
vehicle manufacturing, as they work to With circularity in mind, there is a need minerals to the charging infrastructure The EV value chain needs a specialised
future-proof themselves, increase to investigate ways in which to reduce value chain, is the availability of skills set of personnel available once
competitiveness, and build resilience. metal usage in battery chemistries as well electricity. By the end of 2020, South production comes online for it to invest in
as new chemistries and use cases such Africa had 51.6 GW of wholesale/public new production capacity and supply
b) Battery and cell as second-life use in EVs and nominal capacity, according to the CSIR. chains. Due to the chronic skills gap in the
manufacturing and the micromobility. Extracting the various In the same year, load shedding occurred country, many of the OEMs and content
mining of battery minerals mineral components of a battery has for 859 hours of the year (9.8%) with an suppliers are experiencing labour
proven difficult and costly in the past, and upper limit of 1 798 GWh relative to an shortages, which is a problem likely to get
Batteries are the key component of an EV, recent research is focussing on ways to achieved energy shed of 1 269 GWh – the worse as the country tries to capture some
making up about 40%-50% of the battery- reuse cathodes and other battery parts worst the country has experienced. of the jobs that decarbonisation will bring.
electric vehicle’s value, and the supply of mineral usage. Recycling would have the
battery minerals remains the largest added benefit of reducing the demand With the recent changes in regulations The shortage of technical skills remains a
limiting factor to electric vehicle for new mines. allowing for the procurement of energy major concern. This is an area in which the
production globally – primarily copper, from Independent Power Producers (IPPs) public sector and academic and training
nickel, cobalt, and lithium. EVs require c) Charging infrastructure and the desire to increase procurement of institutes could play a role to develop the
significantly more mineral resources, renewable energy as expressed in the necessary training materials and courses
about six times as much as the The EV charging infrastructure market is Renewable Energy Independent Power and provide funding for the related
conventional ICE vehicle, and with the projected to grow in tandem with the Producer Procurement (REIPPPP) Bid technical courses such as engineering.
transition to renewables, there would growth in EVs. Locally, the private sector Window 5 programme, several players
3 | The Electric Vehicle Ecosystem and associated Value Chains The Electric Vehicle Ecosystem and associated Value Chains | 4
What is evident however is that the driven one, and 68% would want to own one Summary: Intervention breakdown
adoption of new EV value chains is not in future. Most of the respondents, i.e., 86%
only dependent on the engineering and would be open to using an EV as their primary Intervention type Intervention description Responsible
manufacturing side but also on vehicle, rather than as a second vehicle. stakeholder
understanding the new needs and
Incentives – Incentives and subsidies to reduce the upfront capital cost of National government
demands of the customer. The unavailability of public and home Subsidies and purchasing an EV and allow EVs to compete favourably with ICE vehicles. (DTIC)
charging infrastructure (61%), charging support These could include;
g) Electric vehicle consumer times (59.6%), and cost (55%), were cited by • customs control providing duty and VAT advantages, i.e., suspension or City of Cape Town
demand – the end-user the respondents as the biggest barriers to complete elimination; – Enterprise &
Investment
EV ownership in South Africa, which is not • access to “Free Ports” and other duty-free areas adjacent to ports
of entry where imported goods may be unloaded for value-adding
A 2020 national EV perception survey surprising considering the cheapest EV Atlantis Special
activities, storage, repackaging and processing;
conducted over 12 months on more than available in the country costs over R 450,000, Development Zone
• access to “Free Trade Zones” and other duty-free areas offering (ASEZ)
3 000 car buyers found that 1.8% of the and there are only 280 publicly accessible storage and distribution facilities for value-adding activities for
respondents have owned an EV, 13% have charging stations in the country. subsequent export;
• provision of land and properties for lease, with additional tax reliefs and
building allowances;
Opportunity rating matrix • reduced electricity tariffs for manufacturers;
• access to worker recruitment and training services, with additional
employment tax incentives;
Opportunity Economic & job creation Relevance for CCT (1-10) Opportunity rating (1-10)
potential (1-10) • preferential Corporate Tax rates;
• security and other services in enclosed and fenced off areas;
Automotive 9 9 9 • logistical and telecommunication solutions facilitating increased
and component accessibility to the market (major population centres);
manufacturing and • access to export markets via ports and international airports;
assembly
• enhanced access to municipal services; and
• investor support and access to incentives available from the national,
Battery and cell 6 5 5.5
provincial, and local governments.
manufacturing and
assembly
Tax incentives Import/export credit for EVs and incentivisation for increased levels of National Government
localisation (for domestic production). (DTIC)
Mining (of battery 4 0 2 and rebates
minerals)
Reduced EV Favourable electricity tariffs for off-peak charging. City of Cape Town –
charging electricity Electricity Generation
Charging infrastructure 3 4 3.5
and Distribution
provision tariff
Energy provision and 5 9 7
electricity supply
(renewable energy and
grid services)
Innovative financing 2 1 1.5
Research and 1 2 1.5
development
Skills development and 9 9 9
training
Consumer demand 3 7 5
5 | The Electric Vehicle Ecosystem and associated Value Chains The Electric Vehicle Ecosystem and associated Value Chains | 6
Intervention type Intervention description Responsible Intervention type Intervention description Responsible
stakeholder stakeholder
Access to • Initiate, through enabling regulations, a customer-focused response City of Cape Town – Standardisation Components such as connectors, safety systems, and power rating, which South African Bureau
electricity at scale driven by small-scale embedded generation (residential), Electricity Generation are at advanced stages, can be standardised to create standards and of Standards (SABS)
embedded generation (commercial/agricultural), Embedded Generation and Distribution technical norms e.g., ensure vehicles can conveniently be connected to the
(EG) / Distributed Generation (DG) (industrial/mining), and storage. grid to recharge and allow for interoperability.
• Address remaining capacity/energy gaps through an accelerated DMRE National Government
RMPPP (Risk Mitigation Power Purchase Programme) process to ensure (DMRE) The goal should however be global standards to avoid technological
sufficient capacity is available and online when required. islands, and this standardisation should exclude the technologies that are
Eskom still innovating and are at a nascent stage of development - to allow the
• Explore the need to upgrade the electricity grid, particularly in
market to evolve freely.
implementing smart grid, grid management, and smart charging to
account for the increased electricity demand.
Charging • Policy interventions such as updating the building codes to require City of Cape Town –
• Explore the feasibility of vehicle-to-grid (V2G), vehicle-to-home (V2H), infrastructure provisions for workplace charging or home charging. Sustainable Energy
inductive charging, and wireless charging for electric vehicles. Markets
• Technology standards to require interoperability in public charging.
• Support the implementation of IRP 2019 as an immediate focus to ensure
sufficient lead-time for procurement processes and technology-specific
Advocacy Support in creating demand for EVs and the scale required to aid in the City of Cape Town
construction lead times.
creation of a vibrant EV industry – i.e., automotive manufacturing, battery – Enterprise &
• Invest in a diversified source of new energy supply, i.e., from renewables and component manufacturing, recycling, etc. Investment
such as wind and solar.
• Promote research and technology innovation at all segments along Raising awareness of the benefits of EVs and a low-carbon future. The City of Cape Town
the value chain for more efficient use of materials, facilitate material communication process should ideally focus on educating the consumer – Transport
substitution, and foster resilience along the supply chains by conducting about electric vehicle ownership and viability compared to their existing
regular assessments of potential vulnerabilities and the potential ICE vehicle, and not just the environmental benefits.
collective responses.
• Create policy frameworks to promote ESG (environmental, social, and
governance) standards and incentivise recycling and strategically
targeted R&D into new recycling and second-life usage applications and
technologies.
• Provide reliable and transparent data and promote knowledge transfer
and capacity building to support SMMEs and grow the EV ecosystem.
Procurement of EVs Procurement of EVs for future City of Cape Town (CCT) vehicle fleets. City of Cape Town –
Procurement/Supply
Chain Management
R&D funding A readily available pool of local technical and fundamental City of Cape Town
capacity, through skilled workers. Investment into training, academia, – Enterprise &
and skills development. Investment
Access to capital Through concessional funding, private and venture capital, loans, and City of Cape Town
grants, and non-financial investment promotion, partnerships, and – Enterprise &
vertical integration. Investment
The city’s role could include offering credit guarantees for EV loans
and working with OEMs, dealerships, and commercial banks to develop
innovative vehicle ownership models, such as Mobility-as-a-Service
(MaaS), vehicle leasing rather than ownership models, and/or enabling
finance terms specifically tailored for EVs. This could also include
detaching batteries from the financing of the vehicle; thus, the batteries
could be financed separately over a longer time, thereby reducing the
monthly cost.
7 | The Electric Vehicle Ecosystem and associated Value Chains The Electric Vehicle Ecosystem and associated Value Chains | 82
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©City of Cape TownElectric vehicles globally are projected to key and relevant actors and stakeholders
experience steady growth, largely due to: in the different clusters through direct
stakeholder engagement and desktop
• a favourable confluence of factors, research. This report will identify the key
including the national emission role-player clusters that allow this industry
reduction commitments stemming from to function and grow in the future,
the Paris Agreement on climate change; including the original equipment
manufacturers (OEMs), electricity utility
• growing concerns about urban air and independent power producers (IPPs),
pollution due to increasing motorisation EV charging providers, EV owners (private),
and pollution in cities; vehicle and project financiers and
developers, EV fleet owners (Mobility
• continued crude oil price volatility; as a Service, MaaS), the research and
development network, customers, key
• a substantial decline in electric suppliers, and the respective channels.
vehicle (EV) costs led by falling battery
prices; and A high-level description of the business
models currently being implemented is
• favourable policies leading to greater also presented, as well as a case study
uptake of electric mobility. of a local Cape Town-based company
transitioning to an EV fleet, and the
This report aims to increase the benefits accrued to them from this
understanding of the role that the City of transition. A discussion of where there
Cape Town (CCT) can play in the electric are ‘niches’ in the ecosystem and
vehicle space, with guidance on the key associated value chains for CCT to
‘entry points’ where high impact can be intervene to drive impact and develop
achieved. This work is in line with CCT’s and grow the EV ecosystem and
vision for net-zero carbon emissions by value chain is also presented as
2050; and will provide support to CCT’s recommendations at the tail-end of this
transition into a lower carbon mobility report. It is, however, beyond the scope
future. The analysis in this report has been of this project to recommend corrective
done by mapping the clusters/categories measures to overcome identified
in the EV ecosystem and identifying the and mapped challenges.
©District Watch Group
11 | The Electric Vehicle Ecosystem and associated Value Chains The Electric Vehicle Ecosystem and associated Value Chains | 12Figure 1: The Electric Vehicles Ecosystem
Retail
Marketing,
distribution &
Manufacturing dealership
& tooling Independent
Automotive
aftermarket
Manufacturing Parts &
Industry OEM services
Electric Vehicles Basic Replacement
materials, parts &
End User Battery and Cell Transport &
parts & OES accessories
Manufacturing logistics
components
Industry
Tier 1, 2 & 3 Auto Second hand
I&F sales
suppliers assemblers
Charging Parts & Manufacturing Retail and
O&M
infrastructure components & assembly billing
Retail Network Mining
Lithium Ion Battery pack Battery Battery
Raw materials Processing Retail
Battery inputs second life recycling
Manganese Cathode BMS
Cobalt Nickel Anode Packs
Sustainable
Policy and Charging CaF2 Electrolyte Cooling Energy sector
Regulation Infrastructure
Li
Current
Ti
collectors
Graphite Ability Limited
Al, Cu, Fe Cell casings Bottleneck
exists supply in
in SA
in SA SA
Research and Renewable
Development Energy and Funding (public and private)
Grid Services
Financing
13 | The Electric Vehicle Ecosystem and associated Value Chains The Electric Vehicle Ecosystem and associated Value Chains | 14Figure 2 illustrates the global increase It is projected that by 2030, 40% of all Table 1: Total vehicle sales in South Africa between 2010 and 2019
in EV sales over the past five years. new car sales in the European Union will
These figures are projected to increase be electric, and this is to grow to 80% by Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
at a near-exponential rate over 2040 (European Commission, 2020).
the current and next decade. % % % % % % % % % %
ICE 99.87 99.84 99.83 99.88 99.85 99.88 99.87 99.90 99.94 99.89
Total
Figure 2: Global increase and projections of EV sales
Source: (BloombergNEF) Petrol 85.53 85.78 84.38 82.26 82.04 82.68 82.22 82.10 82.80 84.25
Diesel 14.34 14.06 15.44 17.62 17.81 17.19 17.65 17.80 17.14 15.63
60M Evs
per year
EV 0.13 0.16 0.17 0.12 0.15 0.12 0.13 0.10 0.06 0.11
50 Total
PHEV - - - - - 0.03 0.05 0.03 0.02 0.02
40
BEV - - - 0.01 0.00 0.03 0.03 0.02 0.02 0.04
30
HEV 0.13 0.16 0.17 0.11 0.15 0.06 0.06 0.05 0.02 0.05
20
10 The transport sector is also the second- primarily from the combustion of fossil fuel
largest source of GHG emissions, at about and the fuel quality in South Africa that is
0 10.8%., It is the fastest-growing source of at a Euro 2 level.
2015 2020 2025 2030 2035 2040 GHG emissions in the country, accounting
for 91.2% of the increases over the past The Department of Transport (DoT)
decade (NAAMSA, 2020). South Africa contends that fossil fuels, at 92%, are the
EUROPE U.S. CHINA JAPAN SOUTH KOREA REST OF WORLD
contributes about 1.1% of overall global largest source of primary energy in South
emissions, according to the Department of Africa (DoT, 2018); the highest in the Group
Transport’s Green Transport strategy. of Twenty (G20). Emission intensity, on the
Road transport accounts for 91% of direct other hand, is almost double the average
Locally, most of the automotive original to future-proof their businesses. Some emissions across the transport sector, of the other G20 countries (DoT, 2018).
equipment manufacturers (OEMs) are examples of these activities will be
making investments into EVs as they outlined later in this report.
realise the disruption and transition
happening in the automotive industry. The number of EVs sold to date in South
These companies are engaging in new Africa as a proportion of overall vehicle
supply chain partnerships and investing sales since 2010 has been small (< 1%) as
in strategically targeted R&D, skills shown in Table 1.
development, and training as they seek
15 | The Electric Vehicle Ecosystem and associated Value Chains The Electric Vehicle Ecosystem and associated Value Chains | 16Figure 3: South Africa’s total final consumption (TFC) of energy by sector, 1990-2018 Figure 4: Change in demand of each energy source between 2019 and 2020
Source: (IEA, 2020) Data sourced from the International Energy Agency
30 000
25 000
Modern Nuclear Gas Coal Oil Total
20 000 renewables
2%
ktoe
15 000
0%
10 000
5 000 -2%
0
-4%
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018
-6%
INDUSTRY TRANSPORT RESIDENTIAL COMMERCIAL AND PUBLIC SERVICES
-8%
NON-SPECIFIED NON-ENERGY USE AGRICULTURE/FORESTRY
-10%
For the City of Cape Town (CCT), the Accounting for upstream emissions,
emergence of an EV industry is however, EVs are only as green as the
necessitated by a need to achieve CCT’s energy source used to power them.
environmental and climate commitments Powering EVs using electricity from coal
and targets such as carbon-neutrality by sources is counterproductive. Renewable
2050, since the transport sector is the energy sources like wind and solar are
second-largest source of greenhouse gas increasingly being seen as more ideal
(GHG) emissions in Cape Town. The climate options, in line with the global clean and
targets already set for the automotive just energy and urban transition. As
sector cannot be met without electric illustrated in Figure 4 below, renewable
vehicles (and other electric automobiles energy is the only energy source that
such as electric bikes, electric scooters, and grew in 2020 (IEA, 2021).
micro-mobility) in the vehicle modal mix as
ICE improvements alone are insufficient to
make a significant impact.
17 | The Electric Vehicle Ecosystem and associated Value Chains The Electric Vehicle Ecosystem and associated Value Chains | 183
The local automotive
manufacturing
industry – Localising
the EV value chain
©GreenCape3.1.
Figure 6: The electric vehicles manufacturing value chain
Component Component System
Materials
production assembly assembly
Automotive manufacturing value chain
• Steel • Catalytic • Vehicle Chassis • Electric Vehicle
The figures below summarise the automotive value chain for electric vehicles, and how • Aluminum converters • Drive train
the different segments and components fit together to produce a vehicle as the output. • Copper • Shock absorbers • Tyres
• Glass • Clutches/shaft • Propulsion system
Electric Vehicle
• Rubber couplings
• Special fibers • Axles & filters
Figure 5: The automotive manufacturing value chain • Plastics • Auto tooling
• Lead • Brake pads
• Titanium • Engines
• Magnesium • Ignition/starters
• Gaskets
Retail • Gear boxes
• Radiators
• Tyres & glass
Marketing,
distribution & • Silicon & glass • Cells • Modules • Solar PV System
Manufacturing dealership • Cement & concrete • Aluminum Frames • Inverters
& tooling Independent • Iron & steel • Super-substrate • Mounting
aftermarket • Polymers & plastics (glass) structures &
Parts & • Aluminium & alloys • Backing sheet trackers
OEM services • Copper and Alloys • Ethylene Vinyl • Cabling
Electric Vehicles Basic Replacement
• Other metals & Acetate (EVA)
materials, parts & minerals • Copper wiring
Transport &
parts & OES accessories (e.g., cadmium) • Junction box
logistics
Solar PV
components • Magnetics
• Transformers
Tier 1, 2 & 3 Auto Second hand • Circuit boards
I&F sales
suppliers assemblers • Electronics
• Enclosures
• Steel profiles
• Aluminium profiles
Ability • Clamps
Bottleneck Limited • Nuts & bolts.
exists
in SA supply in SA • Conductors
in SA
• Insulation
• Armour
• Cobalt • Cathode • Battery pack • Energy Storage
South Africa has a strong existing world- year preceding the Covid-19 pandemic • Graphite • Anode • Battery manage- System
• Lithium • Electrolyte ment system
(e.g.,lithium-ion)
Battery Storage
class automotive industry and a market and disruptions from the lockdowns), • Manganese • Separator • Cooling system
for the assembly of internal combustion predominantly destined for the export • Nickel • Current collectors • (Inverter)
engine (ICE) vehicles. The automotive market, with the automotive sector • Titanium • Cell casings
sector is the largest manufacturing sector gaining R10.8 billion in foreign direct • Phosphate • Electronics
• Aluminium
in the economy and a priority industry investment (FDI) (Naamsa, 2020). • Copper
under the Industrial Policy Action Plan, Technically, however, South Africa • Iron
and thus receives strong government assembles rather than manufactures • Polymers &
plastics
support. The country is also classified as a vehicles, because some of the components
second-tier market and net exporter of are imported and not made locally. This is
vehicles. In fact, more than 600 000 ICE a key reason for the low local content in
vehicles were manufactured in 2019 (the the automotive industry
21 | The Electric Vehicle Ecosystem and associated Value Chains The Electric Vehicle Ecosystem and associated Value Chains | 22The automotive manufacturing sector is a
key player in the country’s economic
landscape, contributing 6.4% of the gross
domestic product (GDP), R201,7 billion in
export revenues, and 27.6% of
has in recent years sought to further
support the growth of this industry by
pushing for increasing local content – the
percentage of locally produced parts on a
vehicle by volume – through enhanced
3.2.
Local automotive OEMs in South Africa
manufacturing output in 2019. This local production of drivetrain components,
decreased to R175,7 billion in export such as engines and gearboxes.
revenues and 18,7% of manufacturing Several vehicle original equipment manufacturers (OEMs) operate in the country, serving
output in 2020 because of the Covid-19 The first locally produced vehicles were both the domestic and export markets. Table 3 provides a summary of the main vehicle
pandemic. Total revenue from this sector exported in 1995, and as of 2020, 4.7 million OEMs in the country and importers and distributors of vehicle parts and components.
was more than R500 billion (US$35.6 vehicles have been exported cumulatively.
billion) in 2019, with the industry employing Table 2 below summarises South Africa’s
up to 900 000 people directly and percentage share of global vehicle Table 3: The main vehicle OEMs in South Africa
indirectly – including downstream in production in the previous seven years,
wholesale, retail trade, and maintenance. excluding 2020 when the Covid-19
Original equipment manufacturers (OEMs) Importers and distributors
Exports of automotive products reached a pandemic halted manufacturing output
record of R178.8 billion in 2019, shipped to and exports for several months. The BMW South Africa (Pty) Ltd Audi (VW Group)
155 export destinations, up from 149 in 2018 country’s market share of global vehicle
(Cision, 2019). The government, through production peaked in 2019, at 0.69% of Ford Motor Company of Southern Africa (Pty) Ltd European Automotive Imports South Africa (EAISA) (Pty) Ltd
the South African Automotive Masterplan total global vehicle production. (Maserati)
(SAAM) coming into effect from July 2021,
Mercedes-Benz SA Ltd FCA South Africa (Pty) Ltd (Fiat Chrysler Automobiles Group)
Volkswagen Group South Africa (Pty) Ltd Jaguar Land Rover
Table 2: South Africa’s percentage share of global vehicle production (2013-2019)
Nissan South Africa (Pty) Ltd Mini South Africa
Year 2013 2014 2015 2016 2017 2018 2019 Toyota South Africa Motors (Pty) Ltd Porsche
South African market Isuzu South Africa (Pty) Ltd Volvo Car South Africa
share of global vehicle 0.63 0.63 0.68 0.63 0.62 0.64 0.69
production (%) Honda
Mahindra and Mahindra South Africa (Pty) Ltd
Mazda Southern Africa (Pty) Ltd
Mitsubishi Motors South Africa (MMSA)
Peugeot SA (Pty) Ltd
Renault South Africa (Pty) Ltd
Subaru
Suzuki Auto South Africa
Hyundai Auto South Africa Pty Ltd (MOTUS Group)
KIA Motors South Africa (Pty) Ltd
HAVAL Motors South Africa (Pty) Ltd (HMSA)
TATA Motors South Africa
23 | The Electric Vehicle Ecosystem and associated Value Chains The Electric Vehicle Ecosystem and associated Value Chains | 24Figure 7: The main automotive manufacturing hubs in South Africa The Coega IDZ provides the following • enhanced access to municipal services;
incentives to automotive manufacturers: • investor support and access to
GAUTENG incentives available from national,
OEM Commercial vehicles • location in a customs-controlled area provincial, and local government,
& bus companies (CCA) offering duty and VAT suspension; as well as linkage with interfacing the
BMW (South Africa (Pty) Ltd
Nissan South Africa (Pty) Ltd Babcock, Eicher Trucks, Fiat • shared 24-hour security and other Eastern Cape Automotive Industry
Ford Motor Company of Southern
Africa (Pty) Ltd
Group, Ford, Hyundai, Iveco, services in an enclosed and fenced Forum and the Eastern Cape Tooling
JMC, MAN Truck & Bus,
MarcoPolo, Peugeot Citroen, off area; Initiative; and
Powerstar SA, Scania, Tata
Trucks, VDL Bus & Coach and
• land and buildings for lease; • access to worker recruitment and
Volvo Group Southern Africa • logistical solutions providing easy training services.
access to the national freeway (Coega, 2021)
connecting all major cities in the
Eastern Cape and other SA provinces; In terms of production volumes, Toyota
KWAZULU-NATAL
• access to export markets via South and Volkswagen produce the most
OEM Commercial vehicles Africa’s newest deep-water Port of vehicles in the country, holding 24% and
& bus companies Ngqura, the existing port of Port 16% of the local production, respectively.
Toyota South Africa Motors
(Pty) Ltd Bell Equipment, MAN Truck & Elizabeth; and an international airport; The other OEMs each holds less than 10%
Bus and Toyota (Hino)
• shared telecommunication networks; market share, as illustrated in Table 4.
EASTERN CAPE
Table 4: Market share of the top automotive OEMs in South Africa
OEM Commercial vehicles Source: (NAAMSA, 2020)
& bus companies
Volkswagen Group South
Africa (Pty) Ltd FAW Trucks, Isuzu Truck,
Mercedes-Benz SA Ltd
Isuzu South Africa
Mercedes-Benz SA (Freightliner Top OEMs in South Africa Production volumes in 2019 (%) Location (province)
and Fuso) and Volkswagen
Group SA
Toyota SA 24 KwaZulu-Natal
Volkswagen AG 16 Eastern Cape
Figure 7 shows that South Africa’s main (IDZs), and the Nelson Mandela Bay
Ford Motor Co of SA 9 Gauteng / Eastern Cape
automotive manufacturing hubs are Logistics Park (NMBLP), which provide
centred on the Eastern Cape (EC), infrastructure and services mainly to the Nissan 9 Gauteng
KwaZulu-Natal (KZN), and Gauteng (GP) automotive manufacturing industry.
provinces. The Eastern Cape in particular Hyundai SA 6 Gauteng
has been an attractive manufacturing The three transport hubs have in common
Renault 5 Gauteng
destination for years, despite not having that they all harbour private, public,
as high commuter patterns as either the and industrial transport manufacturing Mercedes Benz SA 4 Eastern Cape
Western Cape (WC), KZN, or GP. OEMs yet industries, as well as component
still set up in the EC because of the companies (dealers and suppliers) Isuzu Motors SA 4 Eastern Cape
incentives provided by the East London that support them.
and Coega Industrial Development Zones BMW SA 3 Gauteng
Other 20 –
25 | The Electric Vehicle Ecosystem and associated Value Chains The Electric Vehicle Ecosystem and associated Value Chains | 263.3.
Country Start Year Status Scope Details
Japan 2035 – Diesel, petrol New vehicle sales
Netherlands 2030 Coalition agreement Diesel, petrol All cars
South Africa’s vehicle export markets Norway 2025 Tax and usage Diesel, petrol All cars
incentives
Because of South Africa’s competitiveness emerged in recent years is that most of Singapore 2040 Incentives on electric Diesel, petrol All vehicles
vehicles
in automotive production, which is mostly these automotive export markets have
due to the relatively low labour costs, the announced impending bans on future Slovenia 2030 Emission limit of 50 Diesel, petrol New car sales
country already has an existing vehicle importation of internal combustion engine g/km
export market where up to 64% of the (ICE) vehicles from as early as 2025.
vehicles produced in South Africa are Table 5 summarises the status of export Spain 2040 – ICE New vehicle sales
exported to the European Union, Japan, markets phasing out ICE vehicles in the
Sri Lanka 2040 – Diesel, petrol All vehicles
Australia, the United States, and 131 other short to medium term.
destinations. An opportunity that has Sweden 2030 Coalition agreement Diesel, petrol New car sales
Taiwan 2040 – Diesel, petrol All bus use (2030),
all motorcycle sales
Table 5: Countries phasing out fossil fuel vehicles in the coming years.
(2035), all car sales
(2040)
Country Start Year Status Scope Details
United Kingdom 2030, 2035 (plug-in – Non-electric New car sales
Austria 2027 Government plan Non-electric Newly registered hybrid)
taxis, car shares and
hire cars United States 2030 EV Spree Emitting, Non-electric All government
vehicles (2030)
Belgium 2026 – Diesel, petrol New company cars
Canada 2040 Climate plan Emitting New vehicle sales
This global transition to electric mobility The new South African Automotive
China Researching a Diesel, petrol New car sales
timetable
necessitates the country shifting from Masterplan (SAAM) coming into effect
ICE to EV manufacturing if SA is to retain from 1 July 2021 up to 2035, replaces the
Costa Rica 2050 – Diesel, petrol New car sales preferential trade access with some of Automotive Production and Development
its major trading partners, and its global Programme (APDP) and addresses some
Denmark 2030–35 – Diesel, petrol New vehicle sales
competitiveness. The local OEMs have of the policy shortcomings of the latter. Its
(2030), all vehicle use
(2035). consequently already started to adapt primary objectives are as follows:
and have gone from barely registering
Egypt 2040 – ICE New vehicle sales the possibilities of electric vehicles, just • Growing South Africa’s vehicle production
a few years ago, to fully embracing them. to 1% of global production by 2035;
France 2040 Climate plan Diesel, petrol New car sales
Every major OEM in the country has • Improving the automotive industry’s
an EV strategy, and the shift is competitiveness to be at par with that
Germany 2030 Bundesrat decision Emitting New car sales
accelerating rapidly, as they work of global competitors;
Iceland 2030 Climate plan Diesel, petrol New car sales to future-proof themselves. • Increasing local content in locally
manufactured vehicles from the current
India 2030 Government target Non-electric All vehicles 38% to at least 60% (by using local
materials in line with local content
Ireland 2030 Government bill, Diesel, petrol New car sales
plan dropped from
requirements);
Climate Bill • Doubling the current employment
levels in the automotive industry and
Israel 2030 – Diesel, petrol New imported vehicles supply chain.
27 | The Electric Vehicle Ecosystem and associated Value Chains The Electric Vehicle Ecosystem and associated Value Chains | 28Local Original Equipment Manufacturers future-proof themselves, increase Key role player Recent EV developments and near-future plans
(OEMs) are thereby looking to pivot from competitiveness, and build resilience.
primarily manufacturing internal Table 6 and Table 7 below summarises BMW SA • Launching an electric Mini Cooper in Jan 2021. The Mini SE will be the most affordable battery electric
combustion engine vehicles to electric some recent local developments in vehicle (BEV) in the local market, with pricing starting at R642 000, moving up to R722 000 for the top-
spec model. It will be available for sale in South Africa from the first quarter of 2021.
vehicle manufacturing, as they work to this regard.
• The electric Mini (Mini Cooper SE) Sharing service pilot was launched in Sandton, Johannesburg in early
2021. The pilot will make five Mini Cooper SE electric vehicles available to anyone in need of a vehicle for
a day by downloading the Mini Sharing app (available on Android and iOS) and booking some time with
Table 6: Major global OEMs that have announced exits from the ICE market one of the five EVs. Costs are set on both a per-hour and per-kilometre basis: R36 per hour and R6 per
km of use.
• The BMW battery-powered iX crossover – iX Sport Activity Vehicle – has been announced to arrive in
2020-2025 2025-2030 2030-2035 2035-2040 2040-2045 the South African market in 2022. The vehicle will have a 100 kWh high-voltage battery allowing for a
range of more than 600 km between charges – powered by two electric motors producing a combined
Sales Ban Tesla Jaguar Volvo General Motors Toyota output of 370 kW, which is sufficient to accelerate from 0-100 km/h in less than five seconds. The battery
could be charged from 10% – 80% in under 40 minutes when plugged into a DC fast charger. When
BAIC Ford PSA Hyundai plugged into a normal wall box, it will take less than 11 hours to charge from 0% to 100% capacity.
• BMW is working on a new fifth-generation electric drivetrain, due in 2021, that does not require any rare
Fiat Subaru
earth metals, and plans to double the energy density of its battery cells for an increased range.
Changan Honda
Daimler / • Already offers two plug-in hybrid models in South Africa.
Automobile
Mercedes • Unveiled South African-made C-Class plug-in hybrid electric vehicle. The vehicle will be produced at
Benz SA their facility in East London.
50% Target Nissan – Daimler Mobility – –
(Mercedes Benz) • Mercedes EQC to be launched in South Africa in 2021.
• Daimler will bring electric trucks to the South African market when the local infrastructure can
BMW accommodate the new technology. They anticipate this happening within the next five years.
Stop ICE Volkswagen – – – – Volkswagen SA • Launching an electric VW Golf pilot in Gauteng in late 2020
development • Six fully electric vehicles to be tested by motoring and lifestyle media.
PSA
• The second phase will be expanded to include a fleet of fully electric Volkswagen ID.3 vehicles from 2021.
• The third and last phase will see the first fully-electric Volkswagen EVs available for sale to customers in
South Africa from 2022.
• The newly announced ID.4 electric SUV will also be available for sale in South Africa in 2022.
Table 7: Summary of recent EV developments and medium-term plans
Shell SA Launching the first EV charging stations in their retail network in 2020
Key role player Recent EV developments and near-future plans Gautrain The Gautrain network will include electric buses powered by micro-grids. The Gautrain Management
Agency’s (GMA) Urban Mobility Programme is considering buses with a range of 270 km since currently,
Toyota SA • Producing their first hybrid vehicle in 2021 at the KZN SEZ (Special Economic Zone) Gautrain buses run an average of 200 km per day.
• Toyota SA will produce the all-new hybrid Toyota Corolla Cross SUV- sport utility vehicle later in
2021, which will be sold locally and exported to 43 countries in Africa. This R4.28-billion investment is Scania SA Scania South Africa has partnered with the Limpopo Economic Development Agency (LEDA) and the
projected to generate about R2.85 bn in additional component purchases and create 1 500 new jobs Thulamela municipality to develop the R15-million Scania Thohoyandou auto-workshop. This is in line with
– about 500 of these at Toyota’s prospection plant in Durban, and 1 000 in the wider supply chain. Scania’s global goal to drive the shift towards a sustainable transport system for business and society.
• As of 2019, 36% of Lexus vehicles sold in South Africa are hybrids.
Nissan SA The new 40 kWh Nissan Leaf and 62 kWh Nissan Leaf e+ to be launched in 2020/1
• New full hybrid electric Toyota Prius coming to the South African Market. Toyota has announced
its 2021 Prius model for South Africa, which starts at R566,400. The Prius EV will come with a 1.8-litre
Volvo SA • Volvo launched its first EV in the South African market, the Volvo XC40 P8 Recharge, in May 2021.
Hybrid powertrain that combines an electric motor with Toyota’s 4-cylinder Atkinson cycle engine
Just four days after it went on sale in South Africa in mid-May at a price tag of R1,2 million, the initial
for a total system output of 90kW. A dedicated EV mode enables the vehicle to operate under full-
allocation for the country was sold out. The vehicle has a range of over 400 km and can be charged
electric power.
from 0% to 80% in 40 minutes using a DC fast charger. The twin electric motors deliver 304 kW (408 hp)
• Sasol and Toyota SA have partnered to develop a hydrogen mobility corridor. The project involves of power and 660 Nm of torque, allowing it to go from 0-100 km/h in 4.9 seconds.
developing infrastructure to support hydrogen fuel cell electric vehicles, as Sasol has partnered with
• Volvo South Africa is also rolling out a network of charging stations at its dealerships and will launch
Toyota SA to develop a “proof of concept demonstration” for a green hydrogen mobility ecosystem.
four additional models over the next five years. The company plans to produce electric vehicles
The corridor will be tested along the N3 - between Johannesburg and Durban - as it is one of the
exclusively only from 2030 (no hybrids either).
main freight corridors.
• Toyota also has three fuel cell electric vehicles it plans to pilot in South Africa - targeted at the
Hydrogen fuel South Africa’s first homegrown hydrogen fuel cell electric bus is to be piloted later in 2020. The bus has
passenger market, the bus and heavy-duty truck market.
cell electric bus been developed by Busmark, several universities, government departments, the Council for Scientific and
pilot in 2020 Industrial Research (CSIR) and Hydrogen South Africa (HySA), which is an initiative of the Department of
Science and Technology.
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