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Home Business & Economy

Nigeria and China Forge Strategic Alliance for Local EV Production

May 19, 2025
in Business & Economy
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In a significant push to deepen bilateral ties and drive Nigeria’s industrial transformation, Chinese Ambassador to Nigeria, Yu Dunhai, has underscored the need for enhanced collaboration between China and Nigeria to unlock the vast potential of Nigeria’s solid minerals sector.

During a courtesy visit to Dr. Dele Alake, Nigeria’s Minister of Solid Minerals Development, in Abuja, the ambassador revealed ambitious plans to establish electric vehicle (EV) factories in Nigeria, a move poised to reshape the country’s mining and industrial landscape.

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The announcement, detailed in a statement by the minister’s Special Assistant on Media, Segun Tomori, on Sunday, comes on the heels of a high-level meeting between Nigerian President Bola Tinubu and Chinese President Xi Jinping during Tinubu’s recent state visit to China.

The leaders agreed to elevate their nations’ relationship to a comprehensive strategic partnership, opening new avenues for cooperation in critical sectors like mining and manufacturing.

Ambassador Dunhai emphasized Nigeria’s pivotal role in China’s foreign policy, describing the country as a “great nation” endowed with “tremendous natural resources.” He highlighted the strategic importance of leveraging Nigeria’s mineral wealth, particularly lithium, to drive industrialization through local EV production.

Minister Alake, a vocal advocate for Nigeria’s economic diversification, reiterated the government’s commitment to prioritizing local value addition in the mining sector.

For decades, Nigeria’s solid minerals, including lithium, tin, and gold, have been exported in raw form, fueling industrialization abroad while leaving the country with minimal economic benefits. Alake signaled a paradigm shift, declaring, “For years, our minerals have been exported raw to fuel foreign industrialization. That must change.”

The minister urged Chinese investors to embrace full-cycle investments, encompassing extraction, processing, and manufacturing within Nigeria.

With the global transition to clean energy accelerating, Nigeria’s abundant lithium deposits—a critical component in EV batteries—position the country as a potential hub for EV production. “We want to see local manufacturing of electric vehicles and batteries,” Alake said, emphasizing the potential to tap into Nigeria’s large domestic market and reduce reliance on fossil fuels.

Ambassador Dunhai expressed strong support for Nigeria’s value-addition policy, aligning it with President Xi Jinping’s broader vision of promoting African industrialization.

He revealed that Chinese companies are already deeply engaged in Nigeria’s mining sector, from exploration to processing, and are now planning to establish EV factories and other manufacturing ventures. “We aim to deepen this collaboration, especially in line with President Tinubu’s eight priority areas, notably economic diversification through solid minerals,” Dunhai stated.

The ambassador also addressed concerns about compliance, affirming that the Chinese government has consistently instructed its companies in Nigeria to adhere to local laws, implement robust corporate social responsibility (CSR) programs, and uphold environmental and safety standards.

He reiterated China’s zero-tolerance policy for illegal mining and pledged cooperation with Nigerian authorities to hold violators accountable.

While the partnership holds immense promise, Minister Alake raised concerns about isolated incidents involving Chinese nationals that have tarnished the reputation of compliant Chinese firms. He referenced a recent viral video allegedly showing a Chinese national bribing local security agents, an incident that sparked public outrage.

We have taken action against illegal operators, including some Chinese nationals, Alake noted, stressing that such actions undermine the positive contributions of law-abiding Chinese companies. He called for stronger cooperation with the Chinese embassy to ensure accountability and justice.

To combat illegal mining, Nigeria has deployed Mining Marshals, a specialized security outfit tasked with enforcing regulations in the sector. Alake highlighted the initiative’s success in raising awareness and improving compliance among both local and foreign operators. “The Mining Marshals have sent the right signal in the sector,” he said, underscoring the government’s resolve to sanitize the industry.

WHAT YOU SHOULD KNOW
The proposed collaboration on EV manufacturing marks a pivotal moment in China-Nigeria relations, aligning with Nigeria’s broader economic diversification goals and China’s commitment to supporting African industrialization.

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