China plans to establish electric vehicle factories in Nigeria to utilise the country’s abundant mineral resources. This comes after recent high-level talks between Nigerian and Chinese leaders aiming for a strategic partnership. Addressing compliance concerns, the partnership focuses on local value addition within the mining sector, particularly lithium for EV production.
China is set to ramp up its partnership with Nigeria by launching electric vehicle (EV) factories in the nation. This strategic move aims to harness Nigeria’s rich solid minerals sector. Yu Dunhai, the Chinese ambassador to Nigeria, flagged this during a recent visit and emphasised the wealth of natural resources Nigeria holds. He reaffirmed China’s commitment as a key partner in Nigeria’s development agenda.
The talks between Nigeria’s President Bola Tinubu and Chinese President Xi Jinping, during Tinubu’s state visit to China, were productive and significantly strengthened bilateral relations. Dunhai mentioned that both governments agreed to elevate their relationship to a comprehensive strategic partnership. This aligns with plans for enhanced cooperation in multiple sectors.
Dunhai pointed out that Chinese companies are heavily engaged in various aspects of Nigeria’s mining sector. This ranges from exploration to processing. He stressed the intention to deepen collaboration further, aligning with Tinubu’s focus on economic diversification through solid minerals.
The ambassador assured the Nigerian government of China’s commitment to ensuring that its companies adhere to local laws and prioritise Corporate Social Responsibility (CSR) and safety standards. Notably, he added that China maintains a strict stance against illegal mining activities and is ready to assist in holding wrongdoers accountable.
In response, Minister of Solid Minerals Development, Dele Alake, praised the ongoing relationship between Nigeria and China but raised concerns about the conduct of some operators. He referenced a troubling video that purportedly showed a Chinese national bribing local security forces, which risks tarnishing China’s image in Nigeria.
Alake mentioned that while most Chinese firms operate lawfully within Nigeria, there have been isolated incidents involving illegal operators. He stressed the government’s readiness to deal with such situations. Furthermore, the Mining Marshals have been established to combat illegal mining, and are successfully raising awareness and compliance among stakeholders.
The minister reiterated Nigeria’s openness to genuine investors, highlighting the current focus on adding local value to the mining sector. Alake pointed out that for years, Nigeria had exported raw minerals, but this is changing. The aim now is for local processing to spur development, particularly with lithium, which bodes well for local EV and battery manufacturing.
He urged Dunhai to encourage full-cycle investments from Chinese investors, covering all stages from extraction through to processing. Alake noted Nigeria’s vast market could significantly reduce dependence on fossil fuels, especially through domestic EV production.
In light of these discussions, Ambassador Dunhai expressed enthusiasm for Nigeria’s agenda on local value addition. He indicated that plans are in place to set up electric vehicle manufacturing facilities in Nigeria, signalling a noteworthy development in Nigeria’s industrial landscape and a linchpin for economic diversification.
China aims to solidify its partnership with Nigeria by establishing electric vehicle factories, tapping into the country’s rich mineral resources. This initiative comes on the heels of high-level discussions between the two nations, focusing on economic diversification and local value addition. While the relationship is generally strong, concerns over illegal activities must be addressed to ensure compliance and enhance China’s reputation in Nigeria’s mining sector. Overall, the move reflects Nigeria’s push towards industrialisation and reducing fossil fuel reliance through local production.
Original Source: businessday.ng