Shem Oirere, Africa Correspondent10.16.23
Africa’s automotive market is experiencing growth in the number of new electric vehicle (EVs), with demand likely to surge as will orders for protective coatings.
Original equipment manufacturers (OEMs) and start-ups in EV production have in recent months unveiled new investment plans to produce more EVs as well as expand their existing operations in response to a spike in demand for the Battery Electric Vehicles (BEVs), Plug-in Hybrid Electric Vehicles (PHEVs) and Hybrid Electric Vehicles (HEVs). These vehicles come with components such as electric motors, batteries and power transmission parts that require high performance protective coatings.
In automotive markets such as South Africa, Kenya, Nigeria, Rwanda and Ghana, the OEMs and start-ups are now leading a transformation that is heavily leaning toward more design, production and assembly of EVs.
German data collection and visualization company Statista said EV sales in Africa increased by more than 1000% between from 2016 and 2023. The sales are expected to increase by a further 63% by 2026.
Battery electric vehicles have the largest share of growth among the EV types sold in the continent according to Statista with expectation that this would create demand for both existing automotive protective coating solutions as well as new options for specific EV component needs.
A report by Shell Foundation, which is an initiative of the oil major Royal Dutch Shell, said the emergence of more than 20 start-ups in sub-Saharan Africa, which are focused on e-mobility, particularly electric two-wheelers (E2Ws), is an indication of a continent that is staring at a boom in sales of EVs including E2Ws.
The report predicts sales of EVs in Ethiopia, Kenya, Nigeria, Rwanda and Uganda could be between 340,000 and 820,000 in 2025, growing to approximately 3.8 to 4.9 million units by 2040.
“This suggests that 4-8% of the vehicle parc in these five countries will be electric by 2030, growing to approximately 25% to 35% by 2040,” it said.
Nigeria and Kenya make up approximately 80% of the vehicle car parc of the five leading EVs markets in sub-Saharan Africa countries and are projected to represent 85% of all EVs on the road in these countries by 2040.
Although factors such as access to electricity, electricity reliability, degree of current EV market activity and government electrification targets could impact the adoption of EVs in the region, the report said countries such as Kenya and Rwanda are projected to adopt EVs faster because of progressive policies compared to Nigeria and Ethiopia.
Globally, The Dow Chemical Company said, “the market for plug-in hybrid and battery-powered electric vehicles (xEV) is on track to grow exponentially in the coming years, fueled by tumbling lithium-ion battery prices, favorable government policies, and aggressive plans from automakers to ramp up production.”
Electric vehicles come with many components, many similar to those in fossil fuel-powered ones, but some may require innovative coating solutions to ensure protection and optimum performance. The traction battery pack, DC-DC converter, electric motor, power inverter, charge port, onboard charger, controller, auxiliary batteries, thermal system (cooling) and transmission all require a coating for protection from corrosive elements and low or excessive heating.
In the past few years automotive coatings manufacturers have come up with automotive protective products to enhance the performance and durability of these components, especially the batteries and motors.
For example, Axalta Coatings Systems, one of the companies active in the Africa market, has responded to the global demand for EV-specific coatings solutions with its Plascoat thermoplastic powder. The company said the product, introduced in 2021, protects against corrosion, dielectric, stone chip and fire “in a single layer of coating.”
Axalta Coatings Systems said the evolving mobility sector has brought more EVs to the road but there are no industry-wide guidelines or standards for the requisite products such as coatings and hence each manufacturer has to look for a way of solving the emerging “engineering challenges quickly and cost effectively.”
Africa’s EV market is also likely to benefit from coating solutions from manufacturers with direct operations in the continent or through partnerships such as PPG Industries, The Sherwin-Williams Co., The Dow Chemical Co., Kansai Paint Co. Ltd., Covestro AG, and KAPCI Coatings.
As the use of automobiles shifts in favor of EVs, PPG Industries has previously introduced an EV battery coatings and surface preparation solutions to plug the gap in supply within the EV market.
For Kansai Paints, another industry player in Africa, the automotive industry “is facing a major turning point” as the uptake of EVs increase globally and “like in any other vehicle, EVs require coatings.”
EVs, the company said on its profile page, “will also generate demand for new coatings, such as those used for batteries.”
“The spread of EVs will generate demand for new coatings and coating technologies to address electrification properly. There are a growing number of areas where coatings manufacturer technologies will contribute in terms of conductivity and insulation,” Kansai said.
Introduction of EVs has come with demand for “high-performance, fast-charging batteries, crash-safe structures, effective battery cooling, and stable powertrain components,” says Germany coatings company Covestro AG, also an active player in the Africa market.
As Africa ventures into manufacturing of EVs and some of the components that go with them, more production plants are likely to be built and with it the demand for unique coatings to for the infrastructure to comply with international safety and workplace standards.
Furthermore, the introduction of EVs in Africa has created demand for charging stations that are expected to have not only infrastructure that require coatings but also car parking facilities requiring use of thermoplastic road marking paint.
For automotive protective coating manufacturers, the introduction of the electric vehicle is not only a good business opportunity, but also an avenue through which the companies can boost Africa’s drive towards reduction of emissions in the transportation industry that has been blamed for causing chronic respiratory related illnesses and pre-mature deaths across the continent.
Original equipment manufacturers (OEMs) and start-ups in EV production have in recent months unveiled new investment plans to produce more EVs as well as expand their existing operations in response to a spike in demand for the Battery Electric Vehicles (BEVs), Plug-in Hybrid Electric Vehicles (PHEVs) and Hybrid Electric Vehicles (HEVs). These vehicles come with components such as electric motors, batteries and power transmission parts that require high performance protective coatings.
In automotive markets such as South Africa, Kenya, Nigeria, Rwanda and Ghana, the OEMs and start-ups are now leading a transformation that is heavily leaning toward more design, production and assembly of EVs.
German data collection and visualization company Statista said EV sales in Africa increased by more than 1000% between from 2016 and 2023. The sales are expected to increase by a further 63% by 2026.
Battery electric vehicles have the largest share of growth among the EV types sold in the continent according to Statista with expectation that this would create demand for both existing automotive protective coating solutions as well as new options for specific EV component needs.
A report by Shell Foundation, which is an initiative of the oil major Royal Dutch Shell, said the emergence of more than 20 start-ups in sub-Saharan Africa, which are focused on e-mobility, particularly electric two-wheelers (E2Ws), is an indication of a continent that is staring at a boom in sales of EVs including E2Ws.
The report predicts sales of EVs in Ethiopia, Kenya, Nigeria, Rwanda and Uganda could be between 340,000 and 820,000 in 2025, growing to approximately 3.8 to 4.9 million units by 2040.
“This suggests that 4-8% of the vehicle parc in these five countries will be electric by 2030, growing to approximately 25% to 35% by 2040,” it said.
Nigeria and Kenya make up approximately 80% of the vehicle car parc of the five leading EVs markets in sub-Saharan Africa countries and are projected to represent 85% of all EVs on the road in these countries by 2040.
Although factors such as access to electricity, electricity reliability, degree of current EV market activity and government electrification targets could impact the adoption of EVs in the region, the report said countries such as Kenya and Rwanda are projected to adopt EVs faster because of progressive policies compared to Nigeria and Ethiopia.
Globally, The Dow Chemical Company said, “the market for plug-in hybrid and battery-powered electric vehicles (xEV) is on track to grow exponentially in the coming years, fueled by tumbling lithium-ion battery prices, favorable government policies, and aggressive plans from automakers to ramp up production.”
Electric vehicles come with many components, many similar to those in fossil fuel-powered ones, but some may require innovative coating solutions to ensure protection and optimum performance. The traction battery pack, DC-DC converter, electric motor, power inverter, charge port, onboard charger, controller, auxiliary batteries, thermal system (cooling) and transmission all require a coating for protection from corrosive elements and low or excessive heating.
In the past few years automotive coatings manufacturers have come up with automotive protective products to enhance the performance and durability of these components, especially the batteries and motors.
For example, Axalta Coatings Systems, one of the companies active in the Africa market, has responded to the global demand for EV-specific coatings solutions with its Plascoat thermoplastic powder. The company said the product, introduced in 2021, protects against corrosion, dielectric, stone chip and fire “in a single layer of coating.”
Axalta Coatings Systems said the evolving mobility sector has brought more EVs to the road but there are no industry-wide guidelines or standards for the requisite products such as coatings and hence each manufacturer has to look for a way of solving the emerging “engineering challenges quickly and cost effectively.”
Africa’s EV market is also likely to benefit from coating solutions from manufacturers with direct operations in the continent or through partnerships such as PPG Industries, The Sherwin-Williams Co., The Dow Chemical Co., Kansai Paint Co. Ltd., Covestro AG, and KAPCI Coatings.
As the use of automobiles shifts in favor of EVs, PPG Industries has previously introduced an EV battery coatings and surface preparation solutions to plug the gap in supply within the EV market.
For Kansai Paints, another industry player in Africa, the automotive industry “is facing a major turning point” as the uptake of EVs increase globally and “like in any other vehicle, EVs require coatings.”
EVs, the company said on its profile page, “will also generate demand for new coatings, such as those used for batteries.”
“The spread of EVs will generate demand for new coatings and coating technologies to address electrification properly. There are a growing number of areas where coatings manufacturer technologies will contribute in terms of conductivity and insulation,” Kansai said.
Introduction of EVs has come with demand for “high-performance, fast-charging batteries, crash-safe structures, effective battery cooling, and stable powertrain components,” says Germany coatings company Covestro AG, also an active player in the Africa market.
As Africa ventures into manufacturing of EVs and some of the components that go with them, more production plants are likely to be built and with it the demand for unique coatings to for the infrastructure to comply with international safety and workplace standards.
Furthermore, the introduction of EVs in Africa has created demand for charging stations that are expected to have not only infrastructure that require coatings but also car parking facilities requiring use of thermoplastic road marking paint.
For automotive protective coating manufacturers, the introduction of the electric vehicle is not only a good business opportunity, but also an avenue through which the companies can boost Africa’s drive towards reduction of emissions in the transportation industry that has been blamed for causing chronic respiratory related illnesses and pre-mature deaths across the continent.
