ITAC is considering amending the rules for the Automotive Production Development Programme (APDP) to support battery manufacturing. The thinking goes that we have special rocks in South Africa which are now in demand and if we place the right controls in place around these rocks, we can “increase manufacturing capabilities, create new jobs, and advance our socio-economic development goals“.

Horribly simplified, the APDP gives subsidies to automotive producers based on local content. For instance if you use the special local rock called platinum in your car, this counts towards local content. The proposal will increase this list to encourage Battery Electric Vehicle production. Here is the proposed new items to be added to the list:

• • Rare earth minerals
  • Iron
  • Lithium
  • Graphite
  • Copper
  • Cobalt sulfate
  • Manganese sulfate
  • Nickel sulfate
  • Polymers
  • Sodium carbonate (‘Soda Ash’)

They are also considering increasing the customs duties on new energy vehicle batteries to 15%, the maximum allowed under our WTO commitments. No tariff codes have been provided for any of the products being reviewed and the investigation does not appear to be conducted under the Amended Tariff Regulations, so I don’t think any duty changes can be made based on the submissions received.

You have until 26 June 2025 to respond.

The next step is crucial. Drop us a mail at info@xagta.com to see how we can assist you.