Electric Dreams: China Set to Establish EV Factories in Nigeria
In a significant move that could reshape Nigeria’s economic landscape, the Chinese Ambassador to Nigeria, Yu Dunhai, has called for a stronger partnership between Nigeria and China—particularly in the solid minerals sector. The Ambassador emphasized the potential of establishing electric vehicle (EV) factories in Nigeria, aligning with the country’s ongoing drive towards industrialization and economic diversification.
This important appeal was made during a courtesy visit to Nigeria’s Minister of Solid Minerals Development, Dr. Dele Alake, over the weekend in Abuja.
“Nigeria is richly endowed with natural resources,” said Ambassador Yu Dunhai. “We want to deepen our cooperation and support President Tinubu’s agenda of diversifying the economy, especially through the solid minerals sector.”
A Strategic Meeting Backed by Presidential Dialogue
Ambassador Dunhai’s visit is not just a diplomatic courtesy; it is a strategic follow-up to the recent high-level meeting between President Bola Ahmed Tinubu and Chinese President Xi Jinping. During that bilateral encounter, both leaders agreed to elevate Nigeria-China relations to a comprehensive strategic partnership. This new diplomatic status paves the way for enhanced economic cooperation, particularly in sectors like mining, technology, manufacturing, and renewable energy.
The Chinese envoy described the meeting as pivotal for future engagement between the two nations.
“Our presidents have already set the tone. We are ready to deepen our ties, and the solid minerals sector presents a great opportunity for mutual growth,” Dunhai stated.
China’s Growing Presence in Nigeria’s Mining Sector
China is not a newcomer in Nigeria’s mining ecosystem. In fact, Chinese mining companies have been active across the value chain—from exploration and excavation to mineral processing and logistics. Ambassador Dunhai acknowledged this and emphasized China’s interest in aligning with Nigeria’s economic policies, especially the agenda of moving from raw material exports to full in-country value addition.
This is in line with President Tinubu’s Renewed Hope Agenda, which places economic diversification at the center of Nigeria’s development priorities. By developing the solid minerals sector, Nigeria aims to reduce its reliance on oil revenue and tap into the vast potential of its untapped mineral reserves—notably lithium, gold, bauxite, zinc, lead, and tin.
“Our companies are already involved in exploration and processing. But we want to do more in line with Nigeria’s vision. We are especially interested in lithium, which is key for electric vehicle production,” said the Ambassador.
Chinese Government’s Stand on Illegal Mining
One of the key highlights of the meeting was China’s commitment to ethical and legal business practices in Nigeria. Ambassador Dunhai addressed growing concerns about illegal mining and reiterated the Chinese government’s zero-tolerance policy for any form of illegality.
“We do not support illegal mining. We have instructed all our companies to abide by Nigerian laws and environmental standards. The Chinese government is ready to support Nigeria in punishing any violators,” he stressed.
He also emphasized the importance of corporate social responsibility (CSR) and environmental sustainability, urging Chinese businesses to be model investors by investing in local communities, observing safety standards, and complying with all legal frameworks.
Nigeria's Tough Stance on Illegal Activities
Responding to the Ambassador’s remarks, Dr. Dele Alake commended China’s willingness to collaborate on legal and ethical terms but did not shy away from raising pressing concerns. He specifically referred to a recent viral video showing a Chinese national allegedly bribing local security operatives.
“While many Chinese companies are contributing positively, we’ve also seen cases of misconduct. The Nigerian government is taking such issues seriously. Some illegal operators have already been sanctioned,” Dr. Alake asserted.
To combat illegal mining, the Minister highlighted the government’s introduction of Mining Marshals, a special security task force designed to ensure compliance, enforcement, and community protection. He noted that the unit has already made significant progress in reducing illegal activities and increasing awareness about legal mining procedures.
From Extraction to Manufacturing: A New Vision for Solid Minerals
Dr. Alake outlined a clear policy shift in how Nigeria will handle its mineral wealth going forward. The country is no longer interested in raw mineral exportation. Instead, the focus is on in-country processing, local manufacturing, and technology transfer.
“We are encouraging investments that will cover the entire value chain—from extraction to processing and manufacturing. That is where the real economic benefit lies,” he said.
Nigeria has one of the largest lithium reserves in Africa—a critical component for electric vehicle batteries. With global demand for electric vehicles on the rise, Nigeria has the opportunity to become a hub for EV production in West Africa.
“The era of raw export is over. We want factories here, producing batteries and assembling electric vehicles for local use and export. This will create jobs, build skills, and boost our GDP,” Alake added.
Why Nigeria is Ideal for Electric Vehicle Production
Dr. Alake further encouraged Chinese investors to consider Nigeria as a strategic destination for EV investment. He pointed out several key factors that make Nigeria uniquely positioned for this industry:
-
Abundant lithium and other critical minerals required for battery production.
-
A large domestic market of over 200 million people.
-
Government policies that support green energy and reduce fossil fuel dependency.
-
Nigeria’s access to the ECOWAS regional market, offering a broader consumer base.
-
Ongoing investments in infrastructure, including roads, rail, and power, to support industrial activity.
China’s Commitment to African Industrialisation
In a strong show of support, Ambassador Yu Dunhai expressed China’s readiness to support Nigeria’s value-addition and industrialisation goals. He confirmed that plans are underway to set up electric vehicle factories and other manufacturing projects in Nigeria.
“We welcome Nigeria’s local manufacturing drive. China is committed to African industrialisation and sustainable development. We believe electric vehicle production in Nigeria can be a model for other African countries,” he said.
This collaboration could open up new avenues for technology transfer, job creation, and foreign exchange generation, marking a shift in how Africa engages with international partners.
Final Thoughts: A Turning Point in Nigeria-China Relations
This high-level engagement between Ambassador Yu Dunhai and Minister Dele Alake signals a new era of industrial cooperation between China and Nigeria. With the global economy shifting towards green technology, electric vehicles, and mineral-based innovation, Nigeria is rightly positioning itself as a leader in Africa’s new industrial economy.
China’s readiness to invest responsibly and Nigeria’s insistence on local value creation could result in mutually beneficial projects that elevate both nations economically. As policies align and investments grow, Nigeria may soon witness the birth of its first electric vehicle factory, powered by local minerals and foreign expertise.
For NaijaRush readers and industry watchers, this is a space worth monitoring closely. The future of Nigeria's solid minerals sector has never looked more promising.
