The International Trade Administration Commission (ITAC) has proposed changes to the automotive incentive framework that could encourage manufacturers to source selected battery minerals from countries in the Southern African Customs Union (SACU) and Southern African Development Community (SADC).
The proposed amendments would expand the list of materials that qualify as ‘standard materials’ under the Automotive Production and Development Programme Phase 2 (APDP2) to include minerals used in electric vehicle (EV) battery production.
The list includes lithium, graphite, copper, cobalt, iron, rare earth elements, nickel, manganese, titanium, vanadium, fluorspar and sodium carbonate.
The proposal is intended to support EV battery production and align the incentive programme with the objectives of the South African Automotive Master Plan 2035, ITAC says.
Under the proposal, 50% of the value of qualifying EV battery materials sourced from the SACU and SADC regions would count as local value added in APDP2 Production Incentive calculations. The change would extend standard-material treatment beyond existing automotive materials such as aluminium, steel and platinum group metals to include materials used in EV batteries.
The proposed amendments have been published for public comment. Interested parties have until July 3 to submit comments to ITAC.
