September 12, 2024: Metair Investments has reported a 10% increase in battery sales across its lead and lithium energy storage business for the first half of the year, but warned the group is still being buffeted by tough economic conditions and unspecified supply chain and port disruptions.
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 an operational update on September 5 that overall battery sales were up by 358,000 units from the year-ago period to nearly 4 million.
The increase was largely driven by stronger aftermarket and export sales, the group said.
Detailed interim results are scheduled to be published on or around September 26.
However, Metair said it continues to look at de-risking options for Mutlu Akü as interest rates in Turkey rose to 50% in the reporting period and inflation peaked at nearly 72%.
Meanwhile, the Turkish operation continues to recover from the challenges of last year including a shortage of contract workers and a fall in battery exports.
Automotive battery sales increased to just 1.8 million from 1.76 million in the year ago period.
At Rombat, automotive battery sales were up by just over 40% to 1.3 million units compared to the corresponding period last year, supported by what Metair said were strong market gains in exports and aftermarket sales.
First Battery automotive battery sales are expected to be down by around 9% due to reduced demand from local OEMs and a “price sensitive” local retail environment. However, the battery maker has improved manufacturing efficiencies and product mix, Metair said.
The group warned last May of an “extreme likelihood” that demand for its lead batteries would 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.
Metair has stated previously it plans to sell off its energy storage division when it deems market conditions are right.
