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China to establish electric vehicle factories in Nigeria, tapping lithium riches

Oladehinde Oladipo
4 Min Read

China is set to deepen its collaboration with Nigeria by establishing electric vehicle (EV) factories in the country, a move aimed at unlocking the vast potential of Nigeria’s solid minerals sector.

HE Yu Dunhai, Chinese ambassador to Nigeria, on Sunday, highlighted Nigeria’s significant natural resource endowment and reiterated China’s long-standing commitment to Nigeria as a pivotal partner in its foreign policy.

He recalled the recent productive discussions between Presidents Bola Tinubu and Xi Jinping during President Tinubu’s state visit to China, where both leaders agreed to elevate bilateral relations to a comprehensive strategic partnership, paving the way for increased cooperation across various sectors.

“Chinese companies are already deeply involved in Nigeria’s mining sector, from exploration to processing,” Dunhai stated during a courtesy visit to Dele Alake, Minister of Solid Minerals Development, over the weekend.

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He added, “We aim to deepen this collaboration, especially in line with President Tinubu’s eight priority areas, notably economic diversification through solid minerals.”

He further assured that the Chinese government consistently urges its companies operating in Nigeria to adhere strictly to local rules and regulations, implement robust Corporate Social Responsibility (CSR) initiatives, and maintain high environmental and safety standards.

The Ambassador stressed China’s zero tolerance for illegal mining activities and affirmed their readiness to collaborate with the Nigerian government to bring any culprits to justice.

In response, Minister Alake acknowledged and appreciated the long-standing relationship between Nigeria and China, noting that the majority of Chinese firms operate within the established legal and regulatory frameworks.

However, he voiced concerns regarding the actions of a few operators that have tarnished China’s image, referencing a recent widely circulated video allegedly showing a Chinese national bribing local security agents.

“We’ve taken action against illegal operators, including some Chinese nationals. While these incidents are isolated, they undermine the good work of many compliant Chinese firms. We need your cooperation in ensuring that such culprits are brought to justice,” Alake asserted.

The minister also underscored the positive impact of the Mining Marshals established to combat illegal mining, stating that the outfit has effectively raised awareness and improved compliance among both local and foreign operators.

Reiterating Nigeria’s openness to serious investors, Alake emphasised the government’s current focus on local value addition within the mining industry.

Read also: Tinubu approves 10,000 electric vehicles, worth N151.9b for North-East

“For years, our minerals have been exported raw to fuel foreign industrialisation. That must change. We now prioritise local processing to drive Nigeria’s development. For instance, with the abundance of lithium, we want to see local manufacturing of electric vehicles and batteries,” he stated.

Alake urged Ambassador Dunhai to encourage Chinese investors to commit to full-cycle investments within Nigeria, encompassing extraction to processing.

He highlighted Nigeria’s large market and the significant potential for reducing reliance on fossil fuels through domestic electric vehicle production.

Responding to this call, Ambassador Dunhai expressed strong support for Nigeria’s local value-addition policy, noting that promoting African industrialisation is a key priority for President Xi Jinping.

He then revealed that concrete plans are underway to establish electric vehicle factories and other manufacturing ventures in Nigeria, signalling a significant step towards bolstering Nigeria’s industrial capacity and diversifying its economy.

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Dipo Oladehinde is a skilled energy analyst with experience across Nigeria's energy sector alongside relevant know-how about Nigeria’s macro economy. He provides a blend of market intelligence, financial analysis, industry insight, micro and macro-level analysis of a wide range of local and international issues as well as informed technical rudiments for policy-making and private directions.