A strategic joint venture between local investment group Tabono and US-based ACE Green Recycling will see two environmentally sustainable battery recycling facilities built in SA next year as domestic battery usage increases on the back of intensifying load-shedding.
The two companies said this is in a bid to radically change the management of SA’s battery waste, which is characterised by low collection rates of batteries, a dire need for collection infrastructure and political will to stimulate electric vehicle (EV) uptake.
With interests spanning mining, logistics and recycling, Tabono brings vast experience in the minerals and industrial services industries in Botswana, Mozambique, Tanzania and SA. Green recycling technology company ACE has global operations across North America, Europe and Asia.
The two recycling facilities, both greenfield projects to be established in Gauteng, will separately process and recycle lead-acid and lithium-ion (Li-ion) batteries.
“We’re currently at the early stage of the term sheet but we have identified two properties where we may set up a facility. We should have an update next year about construction timing,” Reon Barnard, co-founder of Tabono Investments, told Business Day.
Battery recycling in SA, which is still at a low base, is done primarily through consumers signing up to make use of special battery collection services, or batteries are dropped off at the various battery recycling centres or recycling points across the country.
The envisioned new facilities will separately process and recycle lead-acid and Li-ion batteries using ACE’s proprietary technology that creates zero Scope 1 emissions by operating without fossil fuel-based heating.
“With dedicated environmentally friendly ways of recycling batteries, the world can leverage valuable materials such as lead, lithium and cobalt and power our future in a less harmful way,” said Barnard.
According to ACE, which is also developing clean technology solutions for other metallic waste streams, it is the only battery recycling tech platform with sustainable solutions for both lead-acid and Li-ion batteries.
Subsequently, under the new structure ACE will have 51% ownership and Tabono will own 49%.
However, a 2021 report by minerals processing specialist Mintek found that there was no viable business case for SA to invest in Li-ion battery recycling.
But Barnard said the inefficiencies of Eskom were shoring up battery usage, as people are forced to find alternative sources of power.
“We recognise that Li-ion is probably a two to five-year play to reach critical mass, but we are in this investment for the long term,” he said.
“Our strategic partnerships in southern and central Africa put us in a position to really unlock this opportunity, well beyond the borders of SA.”
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.