Nigeria’s huge deposits of rare-earth components akin to monazite and neodymium, alongside rising lithium exploration and early advances in electric-vehicle (EV) meeting, are strengthening prospects that the nation might emerge as a worldwide participant within the electric-car worth chain, business stakeholders have mentioned.
In line with information from the Worldwide Vitality Company (IEA), international EV gross sales surpassed 14 million items in 2023, representing about 18% of complete automobile gross sales worldwide.
With projections indicating that annual gross sales might exceed 20 million items earlier than 2030, demand for lithium-ion batteries and uncommon earth magnets is accelerating sharply.
The worldwide EV market is estimated to be price over $800 billion, underpinned by the fast transition to cleaner vitality and net-zero commitments by main economies.
As nations race to safe important minerals and strengthen home provide chains, Nigeria is more and more positioning itself as a possible provider of key inputs and probably a manufacturing hub inside Africa.
Trade stakeholders say Nigeria’s potential lies in combining its mineral endowment with home demand and regional commerce benefits. They argue that strategic coverage alignment and funding might assist the nation combine into the worldwide EV worth chain.
Automotive analyst Tope Adebayo mentioned Nigeria possesses the mineral assets, massive home market and strategic regional positioning required to turn into a worldwide EV participant.
The Minister of Stable Minerals Improvement, Dele Alake, mentioned Nigeria is shifting from exporting uncooked ore to encouraging native processing.
Founder and chief govt of SAGLEV, Sam Faleye, cautioned that whereas Nigeria is endowed with uncommon earth components, creating them for battery manufacturing stays an extended course of.
He added that creating battery manufacturing capability would require vital coverage modifications to create the appropriate funding surroundings.
The worldwide push towards electrical mobility is intensifying demand for important minerals, making a strategic alternative for resource-rich nations. Neodymium-iron-boron magnets, derived from uncommon earth components akin to neodymium, are extensively utilized in EV motors due to their energy and effectivity.
Latest years have additionally seen native companies and analysis establishments unveil pilot EV tasks, together with electrical buses and compact automobiles assembled domestically, signalling early however restricted progress towards electrification.
Nigeria’s skill to compete within the international EV market will rely on its success in transferring past uncooked mineral exports to processing and manufacturing.
Whereas put in meeting capability exists, output stays far under potential, and battery manufacturing infrastructure continues to be at a formative stage.
