China and Nigeria Partner to Build Electric Vehicle Factories and Strengthen Mining Ties

 In a landmark move to deepen economic ties, China and Nigeria announced a $2 billion agreement on May 16, 2025, to establish electric vehicle (EV) manufacturing plants and enhance cooperation in Nigeria’s mining sector. Unveiled during a bilateral summit in Beijing, the deal aims to position Nigeria as a hub for clean energy technology in Africa while boosting its critical minerals industry, amid global demand for sustainable solutions.

The agreement, signed by Nigeria’s Ministry of Industry, Trade, and Investment and China’s Ministry of Commerce, involves Chinese automaker BYD and state-owned China Minmetals Corporation. Two EV factories will be constructed in Lagos and Kano, with a combined capacity to produce 100,000 vehicles annually by 2027. The plants will assemble battery-powered cars and buses, leveraging Nigeria’s abundant lithium and cobalt deposits, essential for EV batteries. The project includes training 5,000 Nigerian engineers and technicians, with operations expected to create 10,000 direct jobs and 25,000 indirect jobs. The first factory, in Lagos’s Lekki Free Zone, is slated to begin production in mid-2026, targeting domestic and West African markets.

On the mining front, the deal grants Chinese firms access to Nigeria’s untapped mineral reserves, particularly in Zamfara and Nasarawa states, where lithium deposits are estimated at 1.2 million metric tons. In return, China will fund $500 million in infrastructure, including roads and power plants, to support mining communities. The agreement also establishes a joint regulatory framework to curb illegal mining, which has fueled insecurity in Nigeria’s North-West. Nigeria, which earns 60% of its export revenue from oil, aims to diversify its economy, with the EV and mining sectors projected to contribute $1 billion to GDP by 2030.

The partnership builds on China’s growing influence in Africa, where it has invested $60 billion in infrastructure since 2015. Nigeria, a key recipient, hosts Chinese-funded projects like the Lagos-Ibadan railway. However, the deal has sparked concerns among local manufacturers, who fear competition from cheaper Chinese EVs, and environmentalists, who warn of ecological damage from unregulated mining. The Nigerian government pledged to enforce strict environmental standards and prioritize local content, with 40% of factory components sourced domestically.

The summit also addressed trade imbalances, with Nigeria’s $1.5 billion trade deficit with China in 2024. Both nations agreed to increase Nigerian exports of sesame seeds and cashews, valued at $200 million annually. President Bola Tinubu, who endorsed the deal, described it as a “game-changer” for Nigeria’s industrialization, while Chinese Premier Li Qiang emphasized mutual benefits. As construction begins, the partnership signals Nigeria’s ambition to join the global EV revolution, though its success hinges on effective implementation and community engagement.