South Africa has taken the lead in Africa’s race to establish operational gigafactories, surpassing Morocco with the recent launch of two major battery production facilities. Solar MD’s 15,000-square-meter plant, capable of producing 3 GWh of clean energy annually, opened shortly after Balancell’s Ndabeni facility debuted in November 2023.
The rapid rollout of these gigafactories underscores South Africa’s strategic focus on clean energy storage, a critical step toward overcoming the intermittency challenges posed by solar and wind energy sources. Gigafactories — large-scale facilities that manufacture electric batteries with capacities exceeding one gigawatt-hour (GWh) — are essential for accelerating renewable energy adoption and driving energy independence across Africa.
According to Ian Musembi, an e-mobility and green energy analyst at Green Rising, the surge in electric vehicle (EV) demand presents a significant opportunity for Africa. “With over 40% of the minerals and metals essential for battery production, the continent can position itself as a major player in the global battery and EV market,” Musembi said.
This development comes amid rising global demand for lithium-ion batteries. A 2023 Li-Bridge report projects a more than five-fold increase in battery demand by 2030, while McKinsey estimates demand will reach 7.8 TWh by 2035, primarily driven by China, the United States, and Europe.
Africa, too, is seeing intensifying demand. South Africa’s lithium-ion battery imports surged to $1 billion in the first half of 2023 alone, a dramatic rise from $0.7 billion for all of 2022.
Globally, renewable energy has grown at an unprecedented rate. Wind capacity surged by 900% between 2012 and 2022, while solar energy dominated investments, accounting for 57% of global renewable funding from 2010 to 2021, according to Zero Carbon Analytics. However, the intermittent nature of these energy sources remains a significant challenge, reinforcing the importance of reliable battery storage systems.
With its abundant natural resources, South Africa’s progress in establishing gigafactories could set the stage for Africa to become a key player in the renewable energy and EV battery market, driving both energy security and economic growth on the continent.
