By Abbas Nazil
Chinese companies are rapidly establishing dominance across Nigeria’s emerging electric vehicle (EV) and lithium supply chain, positioning themselves at both the mining and manufacturing ends of the clean energy spectrum.
With substantial investments in lithium processing plants and increasing presence in Nigeria’s fledgling EV market, Chinese firms are shaping the country’s path toward a greener mobility future.
Two major lithium processing plants backed by Chinese investors are slated to commence operations in 2025.
Jiuling Lithium Mining Company is building a $600 million facility on the border of Kaduna and Niger states, expected to begin production within the current quarter.
Meanwhile, Canmax Technologies is setting up a $200 million plant in Nasarawa State, scheduled to launch in the third quarter.
Both companies are financing more than 80% of these ventures, while local investors hold minority stakes.
These projects bring total Chinese investment in Nigeria’s lithium sector to an estimated $1.3 billion, according to the Ministry of Solid Minerals.
Jiuling, a key global supplier of lithium salts to firms like Tesla and BYD, is known for its scale and influence. Canmax, originally a battery materials company, has transitioned into lithium processing.
Ganfeng Lithium Industry, another China-linked firm, already operates a $250 million facility in Nasarawa, while UK-based Jupiter Lithium is also active in the sector, having discovered high-quality lithium deposits in Kaduna State.
Jupiter has partnered with US firm ReElement Technologies and aims to increase lithium production from 55,000 to 167,000 tons within two years.
Nigeria’s lithium appeal lies in its high-grade deposits—some containing up to 13% lithium oxide—and generous government incentives, including a five-year tax holiday, duty-free imports of machinery, deferred royalty payments, and a 95% capital allowance.
The government has banned the export of raw minerals, requiring local processing. According to Minister of Solid Minerals Development, Dele Alake, these regulations have attracted the surge in factory development.
Alake also confirmed future plans to establish local EV assembly plants powered by Nigerian-processed lithium.
While Chinese firms dominate lithium development, they are also expanding their footprint in the EV market. BYD entered Nigeria in April via a distribution agreement with French firm CFAO.
Despite Nigeria’s unreliable power supply, local companies like Electric Motor Vehicle Company (EMVC) and Saglev are emerging, using off-grid solar solutions to support EV usage. EMVC, based in Abuja, produces electric tricycles, cars, buses, and farm machinery, while Lagos-based Saglev focuses on sedans and SUVs.
The Nigerian government is promoting green mobility through initiatives like solar-powered fast-charging stations.
The Ministry of Innovation, Science and Technology, in collaboration with EMVC, has begun deploying such stations in Abuja.
Minister Uche Nnaji described this as a key step toward reducing fossil fuel dependence and fostering energy security.
Nigeria’s deepening ties with China are also fueling the growth of the green sector. During President Tinubu’s September visit to China, talks with President Xi Jinping focused on infrastructure, energy, and green development.
The two nations elevated their relationship to a “comprehensive strategic partnership.” In June, Foreign Minister Yusuf Tuggar visited Beijing to advance these discussions and explore new proposals on green technology, digital infrastructure, and trade.
Tuggar affirmed Nigeria’s readiness to engage with China not only as a partner but as a strategic ally in achieving sustainable development and economic transformation.
