China Bets on Nigeria for Africa’s EV Future

China is set to establish an electric vehicle (EV) manufacturing plant in Nigeria, marking a strategic leap in the two countries’ growing economic partnership. The move is expected to deepen Nigeria’s industrialization ambitions while leveraging its vast lithium reserves—critical for EV battery production.

The announcement came during a courtesy visit by China’s Ambassador to Nigeria, Yu Dunhai, to the Minister of Solid Minerals Development, Dr. Dele Alake. Both parties emphasized collaboration in developing Nigeria’s solid mineral sector, especially lithium, which has become a prized resource in the global clean energy transition.

Nigeria’s Lithium: The New Industrial Gold

During the visit, Dr. Alake revealed that the Federal Government had granted approval for China to begin setting up EV manufacturing facilities in Nigeria. He called on Chinese firms to go beyond extraction and invest in full-cycle production—from mining to battery and vehicle assembly.

“For years, our minerals have been exported raw to fuel foreign industrialization. That must change,” Alake said. “With the abundance of lithium, we want to see local manufacturing of electric vehicles and batteries.”

This shift aligns with Nigeria’s broader drive to attract technology-backed, value-added investments as part of President Bola Ahmed Tinubu’s economic diversification agenda.

A Strategic Partnership Years in the Making

The EV plant is the latest in a string of major Chinese-backed ventures in Nigeria. From solid minerals to transport infrastructure and agriculture, China has intensified its presence in 2025.

• In January, the China Development Bank approved a $254.76 million loan for Nigeria’s railway modernization project under the Belt and Road Initiative.
• In March, 216 Chinese firms visited Nigeria to explore investments, with 74 targeting the oil sector specifically.
• In April, Chinese engineering giant SINOMACH signed a $1 billion deal to develop a large-scale sugarcane processing facility with the National Sugar Development Council.
• A new shipping route between Shanghai and Lagos launched earlier this year, cutting transit times to just 27 days and enhancing regional trade logistics.

These projects, when viewed together, signal a deliberate and long-term Chinese strategy to cement economic influence in Nigeria across multiple sectors—EVs now being one of the most forward-looking.

EV Ambitions, But With Risks

While the EV announcement presents an exciting opportunity, it raises critical questions about execution, regulation, and long-term benefit to Nigerians. Will these investments lead to local job creation, technology transfer, and industrial independence—or will they replicate extractive patterns of the past?

China’s Ambassador Yu Dunhai emphasized that China views Nigeria as a “strategic partner” and expressed confidence in deepening collaboration under the newly upgraded comprehensive strategic partnership between both nations, following a recent meeting between Presidents Tinubu and Xi Jinping.

What Comes Next

The coming months will be crucial. Beyond public announcements, the actual implementation of EV manufacturing in Nigeria depends on regulatory support, infrastructure readiness, and equitable partnerships.

For Nigeria, it’s a moment of opportunity—to leverage its mineral wealth, industrialize its economy, and assert stronger negotiating power in foreign investment deals. For China, it’s another step in expanding its African footprint, this time through the lens of green technology.

One thing is clear,  the race for electric mobility in Africa just got a new contender—and Nigeria is fast becoming a key player on the global EV map.