Chinese companies are taking up positions at both ends of Nigeria's clean energy supply chain in a bid to dominate the electric vehicle future of Africa's most populous country. Two factories for the processing of lithium, a vital element in the batteries for electric vehicles, are planned in Nigeria this year, both backed by Chinese investors.
One is a 600m facility under construction on the boundary of Kaduna and Niger states in the country's north by Jiuling Lithium Mining Company, which is due to start production this quarter. Another, a 200m facility by Canmax Technologies located in Nasarawa state, just outside the capital, Abuja, will start in the third quarter.
The Chinese firms have the majority stake, funding more than 80 of the ventures, with the minority stakes held by local investors.
Founded in 2011, Jiuling has grown into a leading global supplier of lithium salts for electric car batteries. It counts among its customers the US electric-car maker Tesla, and China's BYD group, the global leader in electric vehicles.
Canmax began life in 1997 as a supplier of battery materials but has veered squarely toward lithium processing in recent years. More plants are also due to start operation this year, bringing current Chinese investments in Nigerian lithium facilities to about 1.3bn, according to the Ministry of Solid Minerals.