CEM REPORT, ENERGY | In a major step towards clean energy goals, two Nigerian agencies have signed a $150 million deal with a Chinese company to build a lithium-ion battery factory in the country.
The agreement, which was announced at the ongoing UN Climate Change Conference (COP28), marks a significant milestone for Africa’s renewable energy efforts.
The National Agency for Science and Engineering Infrastructure (NASENI) and the Rural Electrification Agency (REA) signed the Memorandum of Understanding (MoU) with Shenzen LEMI Technology Development Company on Friday.
The deal will see the establishment of a state-of-the-art battery plant in Nigeria, supporting the country’s ambitious renewable energy targets.
“The signing of the Cooperation Agreement is anticipated to serve as a pioneering initiative for Africa’s Light and Belt Initiative, aligning with global efforts to drive climate technology development and transfer,” said Mutari Ibrahim, REA’s Director of Promotion and Outreach.
According to Ibrahim, the battery plant, backed by Shenzen LEMI’s $150 million investment, will be set up in phases starting from the second quarter of 2024. It is expected to boost indigenous industrialization, create jobs, and drive economic growth. while reducing dependence on fossil fuels. It will also play a crucial role in reducing dependence on fossil fuels and accelerating Nigeria’s transition to a cleaner energy future.
“This aligns with Nigeria’s ambitious goals of achieving universal electricity access by 2030 and net-zero emissions by 2060,” Ibrahim added.
The agreement marks a significant step towards realizing NASENI’s new vision under its Chief Executive Officer, Khalil Suleiman Halilu, who has emphasized the agency’s commitment to developing homegrown technology solutions, upon his appointment in September.
[READ ALSO] First Crude Shipment Arrives at Dangote Refinery
“Nigerians should be expecting products,” Halilu had stated. “This agency has spent a lot of time doing research. I want to see made-in-Nigeria products because the whole essence of doing research and development is to be able to cough out products that will be used by the average Nigerian or African.”
This landmark agreement represents a significant step forward for clean energy development in Nigeria. It demonstrates the Nigeria’s growing commitment to sustainable development and its potential to become a leader in the renewable energy sector.
The project is a significant outcome of the ongoing COP28, showcasing international collaboration towards achieving global climate goals.
