According to media reports, Tesla CEO Elon Musk has discussed the possibility of building a battery factory in South Africa with President Cyril Ramaphosa.
The media report states that Musk's conversation with Ramaphosa took place earlier in 2024, but the information has only been revealed now.
It is also reported that following his meeting with the South African president, Musk sought to have South Africa relax regulations to allow SpaceX's satellite internet service, Starlink, to operate in the country.
Starlink provides broadband access to users but often faces stringent regulations in various countries, aimed at protecting local internet service providers. Nevertheless, some countries have adopted Starlink as a way to diversify internet access. In Africa, Starlink operates in Nigeria, Ghana, and Botswana. According to Musk on social media platform X, Starlink suspended new user registrations in Africa in November 2024 due to a surge in demand.
Under South African law, Starlink must have at least 30% black ownership to operate in the country, a requirement that could force SpaceX to partner with local businesses.
How is Tesla responding? The report indicates that Musk and Ramaphosa discussed the potential for a Tesla battery factory in South Africa as part of a deal to encourage the country to ease its regulations, thereby allowing Starlink to operate locally.
It is unclear what type of battery the "battery factory" Musk and Ramaphosa discussed would specifically produce.
Currently, Tesla manufactures batteries at its Gigafactory in Texas, USA, for the Cybertruck model, but the factory's production capacity is limited, and Tesla still faces challenges in scaling up.
Tesla also produces battery packs for its electric vehicles and energy storage business, with the energy storage sector expanding much faster than the electric vehicle business. The company is building what is referred to as a "megafactory" to produce Megapack batteries required for energy storage products.
Rumors about Tesla planning a factory in South Africa have circulated since 2016, but the company has made no significant progress so far.
