NORTH WEST LEGISLATURE COMMITTEE ON ECONOMIC DEVELOPMENT PUSHES FOR LOCAL BATTERY MANUFACTURING TO UNLOCK NORTH WEST’S MINERAL WEALTH

The North West Provincial Legislature Portfolio Committee on Economic Development, Environment and Tourism, chaired by Hon. Mpho Khunou, has called for greater local beneficiation of the province’s mineral resources, urging stronger collaboration between government and industry to ensure more value, jobs and investment remain in South Africa.
The call followed an oversight visit to the ARXO Metals Renewable Energy Centre (AMREC) in the Madibeng Local Municipality as part of the Legislature’s Oversight Week Programme in the Bojanala District.

The oversight visit formed part of the Committee’s constitutional responsibility to strengthen accountability and ensure that government programmes contribute meaningfully to economic development and improve the livelihoods of communities.

The Committee received a presentation from the Acting Chief Executive Officer of the North West Development Corporation (NWDC), Mr Moagi Mahapa, who explained that the ARXO Metals Renewable Energy Centre is a research and pilot-scale facility developing iron-chromium (Fe-Cr) battery electrolyte and advanced energy storage technologies. Facilitated by the NWDC, the project supports South Africa’s Critical Minerals Strategy by converting locally mined chrome ore into higher-value battery materials.

Mr Mahapa said the facility promotes renewable energy, mineral beneficiation and industrialisation while creating employment and developing critical skills. Since its establishment, the workforce has grown from two employees to 27 permanent staff members, with 70% of employees between the ages of 22 and 30, the majority being from the North West Province.

The Committee further heard that the project has attracted R48 million in capital investment and has produced more than 100 000 litres of Fe-Cr electrolyte for testing in local and international battery markets. The electrolyte will be used in the first flow battery deployment at Tharisa Mine during the first quarter of 2027, with future expansion expected to create additional employment opportunities.

The Committee also received a presentation from Dr Cosmas Chitema, who highlighted that ARXO Metals is advancing downstream beneficiation through research into chrome, platinum group metals and battery technologies, positioning the North West Province as a growing hub for mining innovation and cleaner energy solutions.

While welcoming the progress made, Members expressed concern that the electrolyte produced at the facility is still exported to Germany for final battery manufacturing. The Committee encouraged the company to explore manufacturing complete battery systems in South Africa to maximise local value addition, reduce transport costs and create more jobs.
Hon. Khunou noted that the North West Province has long pursued the establishment of a Special Economic Zone (SEZ), particularly in the Bojanala District, to promote mineral beneficiation. He emphasised that government should ensure more companies benefit from SEZ incentives to stimulate industrialisation and inclusive economic growth.

To maximise the economic opportunities arising from beneficiation, the Committee requested the Department of Economic Development, together with the Office of the Premier, to facilitate an engagement with all relevant stakeholders. It also requested Tharisa Metals to develop short- and long-term strategic plans outlining the government support required for future expansion, with the NWDC serving as the coordinating interface between the company and government.

The Committee concluded that the ARXO Metals Renewable Energy Centre demonstrates the North West Province’s potential to become a leader in mineral beneficiation and renewable energy technologies. However, greater collaboration is required to ensure more of the mineral value chain is retained in South Africa, creating sustainable employment, attracting investment and strengthening the provincial economy.

ENDS