Market Trends of North Africa Battery Industry
Lithium-ion Batteries to Dominate the Market Growth
- Lithium-ion batteries are a rechargeable type of battery that is commonly used in electronic devices and energy vehicles. These batteries are also being used for the storage of energy from renewable energy sources such as solar and wind.
- The energy densities of these batteries are quite high and have a round trip efficiency of 85% to 95%, which means the ratio of energy output/released to energy input/stored. The lithium-ion battery is a low-maintenance battery, and the cells of the battery cause little harm to the environment when disposed of.
- Moreover, the governments of the countries in the region are promoting Electric Vehicles (EVs) in their countries and are reaching out to attract foreign investments. The governments of several countries in the region have launched regional initiatives and policies regarding Electric Vehicles (EVs).
- In March 2020, the President of Algeria called for the promotion of electric cars aiming to reduce the carbon footprint of the country. The government has therefore announced new specifications governing the activity of the automotive industry in Algeria. To promote electric vehicles in the country, the government took several measures, such as restricting the importation of second-handed fossil fuel cars with fewer than three years and prohibiting diesel-based cars for importation. These restrictions on second-handed fossil fuel-based cars are expected to drive the electric vehicles sector in the country, which uses lithium-ion batteries for generating power.
- Hence, owing to the above points, the lithium-ion segment is likely going to be the fastest-growing segment in the North Africa Battery Market during the forecast period.
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Egypt Expected to Dominate the Market
- Egypt is the largest economy in North Africa and has been attracting investments from other countries across the globe for the development of the batteries manufacturing facilities.
- Moreover, the government has set targets for renewable to make up 42% of the country's electricity mix by 2035, based on rapid solar and wind deployment. This is likely going to drive the battery market as batteries can be used to store extra power generated from renewable. In 2021, Egypt's total installed solar capacity was 1655.4 megawatts (MW), compared to 15 megawatts (MW) in 2010.
- In August 2021, Azelio won a USD 1.5 million conditional order from Egypt's Engazaat Development SAE for 20 of its TES.POD renewable energy storage devices. The TES.POD devices will be financed, implemented, and maintained by a project business co-owned by Azelio and Engazaat Development SAE and will be utilized in Egypt's SAVE sustainable agricultural initiative.
- The automotive industry in Egypt is witnessing rapid growth in the electric vehicles market, thus driving the country's battery market. Previously the batteries used in electric vehicles used to cost approximately half the price of the car, which made it non-economical for the people, but with the reduction in battery prices, it is feasible for the common people in the country.
- Hence, owing to the above points, Egypt is expected to dominate the North African battery market during the forecast period.
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