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FG secures $150m Chinese deal for battery production

Bisola David
Bisola David
FG secures $150m Chinese deal for battery production

The Rural Electrification Agency and the National Agency for Science and Engineering Infrastructure have signed a $150 million deal with Chinese investors for battery manufacturing.

The Times reported that this message was conveyed by the Director of Promotion and Outreach at REA, Malam Mutari Ibrahim, in a statement released on Friday in Abuja.

Ibrahim stated that the agreement had been signed with SHENZEN LEMI Technology Development Company.

The agreement was signed as a result of Nigeria’s participation in COP 28 in Dubai, and it was coordinated by the Ministry of Power and the Chinese Ministry of Ecology and Environment.

He stated that the goal of the partnership is to assist in the establishment of a plant in Nigeria that will be used exclusively for the production and processing of lithium-ion batteries.

The $150 million investment from LEMI is supporting the initiative, which is expected to launch gradually in the second quarter of 2024. In cooperation with the Ministry of Power, the Chinese Ministry of Ecology and Environment expressed excitement about being a part of this historic agreement.

Ibrahim went on to say that under the agency’s new leadership, the partnership seeks to strengthen NASENI’s mandate, stressing the management of research and development for capital goods.

The main goal is to advance local mass production of standard parts through reverse engineering and production.

According to him, the agreement will also improve services for the country’s technological advancement, with an emphasis on the electrical industry in particular.

Additionally, the partnership demonstrates REA’s dedication to closing the climate technology gap and thwarting the negative consequences of climate change.

“It also fits in with the country’s aggressive targets of attaining net zero emissions by 2060 and universal access to electricity by 2030,” he stated.

Ibrahim states that the partnership aims to support indigenous industrialization, commercialization, and the development and transfer of climate technology.

The main goals are to support the extractive industry, create jobs, increase economic growth, and improve public-private cooperation.

“Improve public-private collaboration and support the nation’s extractive sector, job creation, and economic expansion.

A low-carbon economy can be achieved by investing in the production of lithium-ion energy storage, as this industry recognizes the critical role that energy storage plays in the shift to renewable energy sources.

“Compared to traditional lead-acid technology, research suggests that lithium-ion energy storage has the potential to reduce CO2 emissions by more than 20% per Kilo Watts per hour capacity,” he stated.

The Times earlier revealed that at COP28 in Dubai, REA and NASENI signed a Memorandum of Understanding on community electrification in Nigeria.

According to the agreement, NASENI will support research and provide the necessary technology to improve the use of clean energy. Their goal is to make sure the electricity in these places lasts a long time and is good for the environment.

The CEO of the Rural Electrification Agency, Ahmad Salihijo, announced on the side lines of the COP28 conference that the organization has installed over 100 solar hybrid mini-grid projects and distributed over 1.6 million Solar Home Systems throughout Nigeria.


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