In a significant step toward sustainability and energy efficiency, Maxion Wheels, the global leader in wheel production for both passenger and commercial vehicles, has partnered with Terra Firma, South Africa's leading provider of solar and storage solutions. Together, they have successfully launched a 2.9 MWp solar project at Maxion's Johannesburg manufacturing plant.
This milestone project not only supports Maxion's commitment to reducing its carbon footprint but also marks a major advancement in the company's ongoing efforts to enhance energy resilience and cost efficiency. The energisation of the solar system was a highlight of Maxion Wheels South Africa's 60th anniversary celebrations.
This cutting-edge solar installation combines carport and ground mount systems, and is set to provide about 20 per cent of the plant's annual energy needs. Not only does it help Maxion reduce reliance on the national grid, but it also offers protection against soaring energy costs. In addition, the project will cut greenhouse gas emissions by an estimated 5,100 tonnes annually.
The second phase, which will add rooftop solar capacity, is slated for completion by Q1 2026, with plans to potentially incorporate a Battery Energy Storage System (BESS) to optimise energy use and provide backup power.
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South Africa's automotive sector is a key contributor to the national economy, generating 5.3 per cenr of GDP and supporting over 500,000 jobs. However, the industry faces growing challenges, from global trade barriers and increasing competition to the urgent need for decarbonisation.
For energy-intensive manufacturers like Maxion Wheels, managing electricity costs is crucial to remaining competitive. Solar power offers a sustainable solution, enabling manufacturers to reduce energy costs, build resilience, and lower their environmental impact.
Maxion Wheels, the world's leading manufacturer of steel and aluminium wheels, produces around 50 million wheels annually at 31 locations worldwide. The Johannesburg plant is responsible for producing high-precision aluminium wheels for top-tier automotive OEMs in South Africa.
Given the plant's high energy demands and 24/7 operations, including automated systems and integrated foundries, ensuring uninterrupted power is critical. Terra Firma ensured that the solar project met strict safety, operational, and health standards throughout its implementation.
Thanks to a medium-term Power Purchase Agreement (PPA), Terra Firma financed, designed, engineered, and installed the solar system, while also taking responsibility for its ongoing management and maintenance. This PPA structure allows Maxion to enjoy the cost savings and environmental benefits of solar energy without the need for upfront capital investment or ownership risks.
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