Local firm Balancell’s newly-opened “gigafactory” will go a long way towards deepening the battery technology value chain and position SA as a manufacturing hub on the African continent.
This is according to trade, industry and competition deputy minister Andrew Whitfield, speaking at the official opening of Balancell’s R150 million facility in Ndabeni, Cape Town.
Balancell last week unveiled its new facility, which will reportedly see it scale-up capacity from 250MWh a year, to 1GWh.
The facility, said Whitfield, marks an investment in innovation and the development of the battery value chain. He added that government is working closely with industry to identify these opportunities.
“This [facility] is not just being developed for South Africa or the region, but for global export. What this company is doing to create jobs and upskill South Africans is also really important to the Government of National Unity.
“As the Department of Trade, Industry and Competition (DTIC), we need to make it easier for businesses to grow, to support businesses like this to procure and employ locally, and upskill local people to become part of the future of green technology.”
Established in 2013, Cape Town-based Balancell is a renewable energy semi-conductor manufacturer. It designs and produces lithium ferro-phosphate batteries for a range of industries, including batteries for electric vehicles.
The company says it is a future-focused, innovative technology business that develops smart batteries designed to manage and protect themselves, and report their use and condition remotely.
Balancell was recently named among the “fastest-growing companies” locally, in a list compiled by News24, together with Financial Times and Statista.
Battery energy storage has become a key component in SA’s just energy transition and diversifying the existing generation energy mix.
Power utility Eskom recently unveiled what it says is the first of its kind and the largest battery energy storage system (BESS) project. Meanwhile, the City of Cape Town has invited potential tenderers to bid for its first utility-scale BESS facility, in line with the construction of its Atlantis solar photovoltaic plant.
Referencing a World Bank Group benchmarking study, Whitfield said SA is a competitive manufacturing destination, offering a compelling value proposition for companies in this sector.
Whitfield said there are a number of policies and incentives in place that will enable the growth of the sector, with Cabinet having already approved the New Energy Vehicle White paper, setting out the objectives for this sector.
On his LinkedIn page, the deputy minister noted Balancell is well-positioned for the transition to new energy vehicles.
“Being able to witness an investment from home-grown companies in this sector is truly inspiring. Balancell’s investment of R150 million in this factory is not only directly in line with the strategic priorities of the Government of National Unity, but also a demonstration of the innovative and entrepreneurial spirit that defines many South African businesses.
“The just energy transition presents a number of opportunities for SA. With the rapid rollout of renewable energy and sustainable mobility solutions, there has also been exponential growth in the demand for equipment and components to power the transition.
“We are motivated by the company’s prospects for growth and further job creation in the coming years. The 75 existing jobs created in this gigafactory, supporting more than 1 500 indirect jobs, is a clear indication of the multiplier effect that can be achieved by strengthening and growing the manufacturing sector.”
Whitfield also highlighted the importance of building a strong base of skilled South Africans.
“Expanding industry partnerships with leading universities and research institutions to enhance local research, development and testing of components is critical to the industry.
“I am, therefore, encouraged that you are already working with the Nelson Mandela and Stellenbosch Universities, as well as the Council for Scientific and Industrial Research.”
He said the investment is an example of South African resilience, innovation and entrepreneurship.
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