China’s plans to build an electric vehicle (EV) factory in Nigeria proves that the future of clean, advanced mobility solutions might be closer than anticipated. In a recent meeting with Nigeria’s Minister of Solid Minerals Development, Dr Dele Alake, China’s Ambassador to Nigeria, Yu Dunhai, stressed the importance of working hand in hand to unlock Nigeria’s mineral wealth—especially lithium, which is essential for EV batteries. Both sides share the same goal: using Nigeria’s natural resources to power the country’s industrial future, particularly in the fast-growing EV market.
Ambassador Dunhai reminded everyone that Nigeria is a key partner for China. The recent upgrade of their relationship to a comprehensive strategic partnership opens the door to deeper economic and technological cooperation. Dr Alake, for his part, welcomed Chinese investments at every stage—from mining to manufacturing—and encouraged Chinese businesses to explore Nigeria’s industrial opportunities.
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Focus on Lithium, EVs, and Building Locally
Nigeria’s large lithium reserves are at the heart of this partnership. Until now, most of Nigeria’s minerals have been shipped out in raw form, benefiting industries abroad. But the vision is changing: Nigeria wants to become a hub for building electric vehicles and batteries in the region. This fits well with President Bola Tinubu’s plan to diversify the economy and build more self-reliance.
Plans are in motion to set up EV factories and related businesses in Nigeria. Chinese companies, already active in mining—from digging up minerals to processing them—are expected to play a key role. By focusing on local processing, Nigeria hopes to move away from just exporting raw materials and instead build an industry that adds value, creates jobs, and boosts the economy.
More Chinese Involvement in Nigeria This Year
The EV factory is just one part of a bigger wave of Chinese investments in Nigeria this year:
– In April, the National Sugar Development Council (NSDC) signed a $1 billion deal with Chinese firm SINOMACH to grow and process sugarcane on a large scale, aiming to modernise Nigeria’s sugar industry.
– In March, 216 Chinese companies visited Nigeria looking for investment opportunities, with many eyeing the oil sector—a sign that Chinese interest is broadening beyond traditional areas.
– A new shipping route between Shanghai and Lagos launched in February, cutting transit time to just 27 days, making trade faster and more efficient.
– In January, China’s Development Bank approved nearly $255 million to upgrade Nigeria’s railways as part of China’s Belt and Road Initiative, helping to improve infrastructure and connectivity.
What This Means for Africa and the Growing Role of China
This partnership shows how Africa is increasingly turning to China as a key player in building its industries, infrastructure, and resource development. Nigeria’s plan to process minerals locally and build EVs is a clear attempt to use its resources for long-term growth rather than just selling raw materials.
For Africa, this brings both hope and caution. It offers real opportunities for economic transformation, technology sharing, and new jobs. But it also raises concerns about relying too much on China, potential exploitation of resources, and whether local skills and capacities will grow as much as the investments.
Challenges Ahead
Nigeria has great potential to become a leader in EV manufacturing, but it faces some big hurdles. Infrastructure problems like unreliable electricity, poor roads, and lack of industrial parks need urgent attention. Clear and consistent policies are crucial to attract and keep foreign investors, creating a stable business climate. Environmental protections must also be in place to limit damage from lithium mining and battery production.
And while working with China brings much-needed capital and expertise, Nigeria must avoid putting all its eggs in one basket to protect its economic independence and future stability.
Finding a Way Forward
To make the most of this opportunity, Nigeria should tap into the African Continental Free Trade Area (AfCFTA) to become West Africa’s EV manufacturing centre, exporting vehicles and batteries across the region. Public-private partnerships with Chinese firms can help increase local content and transfer know-how. Nigeria also needs a strong green industrial policy to promote sustainable mining, renewable energy, and recycling within the EV supply chain. Collaborating with other mineral-rich African countries like the Democratic Republic of Congo and Zimbabwe could help build a continent-wide EV supply network.
Looking Ahead: Africa’s Industrial Future Accelerates
China’s plan to build an EV plant in Nigeria is much more than a business deal—it’s a glimpse of Africa’s industrial future. It signals a move from exporting raw materials to making finished products, and from dependency to partnership. If managed well, this collaboration could transform Africa’s place in the global economy—one electric vehicle at a time.
The journey won’t be easy, but the destination is clear: an Africa that builds, innovates, and drives its own future.