Metair climate report forecasts fall in lead battery demand

Metair climate report forecasts fall in lead battery demand

Metair climate report forecasts fall in lead battery demand 728 730 Batteries International

May 24, 2024: Metair Investments has warned of an “extreme likelihood” that demand for its lead batteries will fall significantly within the next decade amid global moves to phase out internal combustion engine vehicles. Potential growth for its business may well be set for Africa.

The battery and automotive group, whose energy storage division includes Turkey’s Mutlu Akü lead battery business, Romanian lead and lithium company Rombat and South Africa’s First National Battery (FNB), said in its finalized climate change report for 2023, released on May 17, that lead battery sales are expected to fall with the transition to new energy vehicles (NEVs).

Metair said that the transition is extremely likely to trigger a decrease in demand for its batteries in the next 10 to 20 years, which could significantly impact its growth and sustainability within export markets served by FNB’s OEM customers in South Africa as well as the OEM and aftermarket sales in Mutlu Akü and Rombat territories.

The company said it has already started diversifying sales of lead acid batteries towards the larger aftermarket sector in Africa, where NEVs are expected to take much longer to penetrate.

In addition, the group said it is increasing expenditure and R&D into next-generation batteries that can meet NEV energy storage demands.

Meanwhile, Metair said it is committed to becoming net zero across the group’s entire value chain, in line with ambitions to limit the global rise in temperature to 1.5°C compared with the pre-industrial era.

Interim targets to mark progress toward reducing carbon emissions across the group have been established and are being monitored bi-annually.

Metair has stated previously it plans to sell off its energy storage division when it deems market conditions are right.