Faith Nyasuguta
China, the world’s largest producer of electric vehicles (EVs), has unveiled plans to establish a state-of-the-art EV manufacturing plant in Nigeria, Africa’s most populous nation and one of its largest economies. This move marks a significant milestone in Nigeria’s ambitions to industrialize and diversify its economy, while deepening the country’s strategic partnership with Beijing.
The announcement came during a courtesy visit by China’s Ambassador to Nigeria, Yu Dunhai, to Dr. Dele Alake, Nigeria’s Minister of Solid Minerals Development. Ambassador Dunhai emphasized the importance of collaboration between the two countries in harnessing Nigeria’s rich mineral resources, particularly lithium, a critical component in EV battery production.
“The development of Nigeria’s solid minerals sector is crucial for both our countries,” Ambassador Dunhai stated, underlining China’s commitment to supporting Nigeria’s industrial growth through technology transfer and investment. He added that Nigeria is a key partner in China’s foreign policy, a fact reinforced by the recent summit between Presidents Bola Ahmed Tinubu and Xi Jinping. At the summit, the two leaders agreed to upgrade bilateral ties to a comprehensive strategic partnership, opening doors for expanded economic and technical cooperation.
In response, Dr. Alake highlighted that the Nigerian government has officially authorized China to develop electric car manufacturing factories on Nigerian soil. “For many years, Nigeria’s minerals have been exported in raw form, fueling industries abroad,” he said. “This must change. We are now prioritizing local processing and manufacturing to drive Nigeria’s development agenda.”
The Minister encouraged Chinese businesses to invest fully along the value chain,from mining and extraction to processing and final assembly of EVs and batteries. “With Nigeria’s vast lithium deposits, we envision local production of electric vehicles that can serve both domestic and export markets,” Dr. Alake explained.
This announcement is part of a broader wave of Chinese investments and engagements in Nigeria during 2025. Earlier this year, Nigeria inked a $1 billion deal with Chinese company SINOMACH to develop a large-scale sugarcane production and processing facility, signaling China’s growing footprint beyond traditional sectors.
Furthermore, Chinese investors continue to explore opportunities in Nigeria’s oil industry, mining sector, and infrastructure projects. Notably, the China Development Bank approved a $254.76 million loan for railway modernization efforts, part of China’s Belt and Road Initiative, which aims to boost connectivity and trade.
Logistics improvements are also underway. A new shipping route between Shanghai and Lagos was launched in February, reducing transit time to just 27 days and enhancing trade flow between Nigeria and China.
Against this backdrop, the planned EV plant is poised to transform Nigeria’s automotive sector and reinforce its status as a regional industrial hub. Nigeria’s Energy Transition Plan projects the deployment of 13 million electric vehicles by 2050, aiming for full EV adoption by 2060. The establishment of local manufacturing facilities is critical to achieving these targets.
President Tinubu has expressed enthusiasm about these developments, noting Nigeria’s abundant mineral wealth, youthful workforce, and strategic location as factors that make it an ideal destination for EV production. “We are open for business,” he declared, urging investors to seize the opportunity to participate in Nigeria’s economic diversification and green energy future.
As China continues to deepen its economic ties with Nigeria through major investments and technology partnerships, the electric vehicle plant initiative is a landmark step towards sustainable industrialization. It embodies Nigeria’s ambitions to move up the value chain, create jobs, and position itself as a leader in Africa’s growing clean energy economy.
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