A new initiative by the Global Environment Facility (GEF) is funding battery value chain projects in South Africa.
The GEF-backed initiative, ‘Supporting the just energy transition in South Africa by strengthening local value chains and enhancing quality assurance for electric vehicle batteries’, is a five-year project being implemented by the United Nations Industrial Development Organisation (UNIDO) together with the South African National Energy Development Institute (SANEDI).
The project is focused on building the foundations needed to accelerate the growth of South Africa’s electric vehicle and battery value chain while supporting a just, low-carbon energy transition.
Importantly, a significant part of the program looks at workforce development, battery recycling, and investment opportunities for local manufacturing and beneficiation.
SANEDI Acting CEO Professor Prathaban Moodley says that South Africa has the industrial capability, technical expertise, and access to critical minerals needed to play a meaningful role in the global battery value chain.
“The transition to a low-carbon economy is not simply about changing technologies. It is about transforming industries, creating new opportunities to strengthen our economy, and ensuring that South Africa remains competitive while delivering on our climate change commitments,” Moodley says.
Value chain opportunities
The GEF initiative is a signal of the growing competitiveness in emerging markets, and aligns with Africa’s focus on growing its mid and downstream sectors, reflecting the shift from being a raw material exporter to a value creator.
In June 2026, the South African Government highlighted plans to review its automotive policy to include battery metals in its automotive incentive program, supporting local production and the growth of related supply chains.
To be included in the incentive program, materials such as rare earths, iron, lithium, graphite, copper, and cobalt will need to be sourced from the Southern African Customs Union and countries of the Southern African Development Community.
The program is designed to align with the South African Automotive Master Plan 2035, which outlines a goal to raise output to around 1.4 million vehicles a year, deepen localisation, and support the transition to electric mobility.
Write to Amy Rotman at Mining.com.au
Images: United Nations South Africa
