South Africa Rewrites Auto Policy: EV Battery Minerals Now Eligible for Incentives
South Africa Rewrites Auto Policy: EV Battery Minerals Now Eligible for Incentives
South Africa plans to add minerals used in the manufacture of electric vehicle batteries — including rare earths, iron, lithium, graphite, copper, and cobalt — to its automotive incentive program to boost local EV production and support related supply chains, the International Trade Administration Commission said in a government notice.
Why the change? The country is reviewing its automotive policy to address:
▪The global shift towards electric and hybrid vehicles;
▪Tightening emissions rules;
▪Rising competition from low-cost imports.
What are the sourcing rules? Materials must come from:
▪The Southern African Customs Union;
▪The Southern African Development Community.
Half of their value will count as locally added value to qualify for production incentives.
What is the goal? The revision aligns with the South African Automotive Master Plan 2035, which aims to:
▪Raise vehicle output to about 1.4 million units annually;
▪Support the transition to electric mobility.
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