China Set to Launch Electric Vehicle Factory in Nigeria Amid Strengthening Economic Ties

The world’s leading electric vehicle-producing nation, China, is set to establish a full-scale EV manufacturing plant in Nigeria, marking a significant milestone in Nigeria’s industrialization journey and deepening Beijing’s growing economic influence in Africa’s most populous nation.

The announcement was made public during a courtesy visit by China’s Ambassador to Nigeria, Yu Dunhai, to the Minister of Solid Minerals Development, Dr. Dele Alake. Ambassador Dunhai emphasized the importance of deepening bilateral cooperation, particularly around Nigeria’s rich solid minerals, which are crucial for electric vehicle battery production.

“China has always considered Nigeria a strategic partner,” Ambassador Dunhai said. He referenced the recent high-level meeting between Presidents Xi Jinping and Bola Ahmed Tinubu, where both leaders agreed to elevate the China-Nigeria relationship to a comprehensive strategic partnership, opening the door for expanded technical and economic collaboration.

Dr. Alake confirmed that the Nigerian government has officially granted approval for Chinese companies to establish EV manufacturing plants in the country.

He urged Ambassador Dunhai to encourage Chinese firms to invest across the entire value chain—from mineral extraction to full-scale manufacturing.

“For years, our minerals have been exported raw to fuel foreign industrialisation. That must change,” Alake stated. “We now prioritise local processing to drive Nigeria’s development. For instance, with the abundance of lithium, we want to see local manufacturing of electric vehicles and batteries.”

Alake further noted that plans are actively underway to establish electric car factories and other industrial ventures. “Chinese companies are already deeply involved in Nigeria’s mining sector, from exploration to processing,” he said. “We aim to deepen this collaboration, especially in line with President Tinubu’s eight priority areas, notably economic diversification through solid minerals.”

The EV plant announcement is the latest in a series of high-level Chinese investments in Nigeria throughout 2025. In April, the National Sugar Development Council signed a $1 billion deal with Chinese conglomerate SINOMACH to develop a large-scale sugarcane production and processing facility, a move hailed as transformative for the nation’s sugar sector.

In March, 216 Chinese firms visited Nigeria in search of investment opportunities, with 74 showing direct interest in the country’s oil sector, a clear signal of China’s intent to diversify its engagement across Nigeria’s core industries.

In February, a new maritime shipping route was launched with the arrival of the MV Great Cotonou, a Con-Ro vessel from China, at Lagos’ PTML terminal, West Africa’s largest multipurpose RO/RO facility. The route cuts transit time between Shanghai and Lagos to just 27 days and is expected to significantly boost trade logistics between both countries.

The year began with another major infrastructure deal when the China Development Bank approved a $254.76 million loan to fund a major railway expansion under Nigeria’s railway modernization program, part of the broader Belt and Road Initiative.

As China ramps up its investments across Nigeria’s transportation, energy, and manufacturing sectors, the EV initiative stands out as a game-changing leap toward sustainable industrial growth and deeper economic cooperation between both nations.

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