Giyani secures IDC funding for EV battery materials in South Africa

Giyani Metals Corp. has secured additional financing from the Industrial Development Corporation of South Africa (IDC) as work continues on developing battery-grade manganese supply linked to the region’s emerging electric vehicle (EV) battery value chain.

The Toronto-listed company announced that it has signed an addendum to its existing convertible loan facility agreement with the IDC, increasing funding available to its subsidiary Giyani Metals South Africa (GMSA) by ZAR29.9 million. The funds were drawn down on March 9, 2026, and received on March 12, 2026.

Following the amendment, the loan facility for GMSA has increased to ZAR264.3 million, while the maximum combined loan facility under IDC financing arrangements now totals ZAR329.9 million.

The additional funding supported continued operations at Giyani’s demonstration plant in Johannesburg, where the company has been producing high-purity manganese sulphate monohydrate (HPMSM)—a key raw material used in lithium-ion battery cathodes for electric vehicles and energy storage systems.

Material produced at the facility is being prepared for analysis by potential offtake partners, while operational data from the plant—including reagent consumption, crystalliser performance and purge management—will be incorporated into the definitive feasibility study (DFS) for the K.Hill Battery-Grade Manganese Project in Botswana.

As a result of the additional operational work and data collection, the company said the DFS is now expected to be completed in Q2 2026.

Under the amended agreement dated February 26, 2026, the demonstration plant completion deadline has been extended to June 30, 2026, although the company said it does not intend to restart operations at the facility. The agreement also grants the IDC additional security over certain project assets and confirms that Giyani has provided at least ZAR40 million in funding to its subsidiaries to support completion of the feasibility study.

Subject to regulatory approvals, the IDC may also nominate one director to Giyani’s board if conversion of the loan facilities results in the institution holding more than 10% of the company’s issued shares. The addendum remains subject to final acceptance by the TSX Venture Exchange.

The project comes amid growing global demand for critical minerals used in clean energy technologies, including copper, cobalt, lithium and manganese, which are essential components in products such as electric vehicle batteries and solar panels.

South Africa is positioning itself to play a larger role in this supply chain. According to the country’s National Treasury, 1 billion rand has been allocated over the medium term to support industrial development incentives aimed at boosting investment in sectors such as automotive manufacturing and new-energy vehicle production, as reported by Reuters.

The incentive programme aims to strengthen local production and assembly of electric vehicles, batteries and related manufacturing projects, while improving operational efficiency and competitiveness. Authorities expect the scheme to attract around 30 billion rand in private-sector investment.

South Africa released its Electric Vehicles White Paper in 2023, outlining a strategy to transition the country’s automotive sector—from predominantly producing internal combustion engine vehicles—to a mix that includes electric vehicles by 2035.

The government is also working on a regional critical minerals strategy, led by the departments of trade and industry and mineral resources, to strengthen supply chains for materials needed in energy transition technologies.

As the largest automotive manufacturing hub in sub-Saharan Africa, South Africa hosts major global brands including Toyota, Ford, Isuzu, Volkswagen and Mercedes-Benz, creating a potential industrial base for future EV production and battery supply chains.

Against this backdrop, projects such as Giyani’s K.Hill development, which aims to produce low-carbon battery-grade manganese, are seen as part of the broader effort to secure regional supply of key battery materials for the growing electric mobility sector.