...Africa has the lithium, China has the capital and technology to develop the mines, extract and process lithium and use the lithium to produce the EVs made in Africa under a JV and supported by African Govts.
....Over time, as long as China leads the EV race, it can access its cheap lithium from China, Africa and South America. Cheap EV batteries is key to winning the EV race. And China has the most advanced battery technology and access to cheap critical minerals to make them. Plus access to emerging economies market globally.
....They are moving fast while US and EU auto makers are sitting in their ICE/hybrid la-la land focusing on short term profits rather than market share.
....Africa may have an abundance of untapped lithium deposits- we just don't know enough about them and probably under-reported, although it could still take several years become their output become more material- well, probably timely after the EV/lithium winter hibernation ends, so when demand for EVs start moving up the curve, their supply would come in timely to ensure a balance demand-supply that won't disrupt pricing much. Which could well help SC6 price stabilise under $1000-1200/MT for sometime to come.
South Africa Lures BYD With Critical Minerals, Car Output Skills
Trade minister sees EVs part of push to industrialize Africa
China pledged $10 billion private-firm investment in continent
By Bloomberg News
September 6, 2024 at 5:27 PM GMT+10
Talks are progressing between BYD Co. and South Africa over a possible investment by the Chinese electric vehicle manufacturer, a top government official said, although no specific time frame for the next steps has been agreed.
BYD has expressed interest to work and invest in South Africa, according to Parks Tau, the country’s trade, industry and competition minister. “It’s now about taking it to the next level,” he said.
Tau pointed to South Africa’s extensive car-production experience and its access to key resources such as lithium and manganese that are key to battery making. “We’ve got the minerals that are indispensable,” he said.
Leaders from some 50 African countries gathered in Beijing this week for the Forum on China-Africa Cooperation, or Focac, where there have been frequent calls for China to help industrialize African economies by increasing technology transfers and beefing up manufacturing.
Earlier this week, Tau accompanied the South African President Cyril Ramaphosa to BYD’s Shenzhen headquarters, where they were personally greeted by founder and chairman Wang Chuanfu who sought to wow them with the company’s advanced EV technology and car features.
Chinese EV makers are facing geopolitical pressures as they push to sell their cars on international markets. The US has slapped 100% tariffs, effectively shutting them out, and the European Union introduced new measures on July 5 that raised duties on Chinese-made EVs to as high as 48%. Both have cited Beijing’s financial backing for the industry and the overcapacity it has encouraged.
Tau said such moves have forced the Chinese to rethink what their approach is to international expansion. “But our commitment is to continue to work on this relationship,” he told Bloomberg News on the sidelines of Focac.
He said his government was talking to BYD as well as other Chinese companies in the EV-related industry. “They’ve been part of the conversations we are having here, primarily focusing on ensuring that industrialization happens on the African continent.”
On Thursday, Chinese leader Xi Jinping pledged $50 billion in financial support for Africa over the next three years, including $10 billion in investment by Chinese companies. His No. 2, Li Qiang, on Friday pushed for deeper integration into the continent’s economies.
“Chinese companies in Africa should continue to localize their operations, create more local jobs, train more local talent, and further contribute to local people’s well being,” Li said.
While the consumer market for electric and plug-in hybrid vehicles across Africa remains somewhat nascent, Chinese companies in the EV space are making early bets, particularly investments in the supply chain. Xiaomi Corp Chairman Lei Jun said at Focac that his company wants to increase investment in Africa and strengthen cooperation with local firms in areas such as EV.
BYD has entered several African markets, including Tunisia, Rwanda, Morocco and South Africa, following a similar trend of other Chinese auto brands, including SAIC Motors and smaller upstart Xpeng.
