In a significant development, the Rural Electrification Agency (REA) and the National Agency for Science and Engineering Infrastructure (NASENI) have formalised a groundbreaking $150 million battery manufacturing agreement with esteemed Chinese investors.
Director, Promotion and Outreach (PIO) at REA, Malam Mutari Ibrahim, disclosed this transformative collaboration in a statement released in Abuja.
This historic agreement was inked with SHENZEN LEMI Technology Development Company, and it materialised under the auspices of the ministry of power, in conjunction with the China Ministry of Ecology and Environment.
The accord stems from Nigeria’s participation in COP 28 in Dubai, marking a pivotal takeaway for the nation.
The primary outcome of this partnership is the establishment of a Lithium-Ion Battery manufacturing and processing facility within Nigeria.
Ibrahim outlined that the initiative, backed by a $150 million investment from LEMI, is slated to kick off in phases, commencing from the second quarter of 2024.
Expressing their enthusiasm, both the China Ministry of Ecology and Environment and the Ministry of Power underscored the transformative nature of this cooperation. The collaborative agreement is anticipated to serve as a pioneering effort for the Light and Belt Initiative in Africa, aligning with global endeavors to propel climate technology development and transfer.
Ibrahim stressed that this collaboration is pivotal in fortifying NASENI’s mandate under its new leadership, focusing on the research and development of capital goods, production, and reverse engineering to bolster local mass production of standard parts. Furthermore, the agreement is set to elevate services for technological advancement, with a special emphasis on the electricity sector.
Notably, this collaboration reflects REA’s unwavering commitment to narrowing the climate technology gap and mitigating the adverse impacts of climate change. It resonates with Nigeria’s ambitious goals of achieving universal electricity access by 2030 and net-zero emissions by 2060.
The partnership’s overarching objectives include fostering the development and transfer of climate technology, promoting indigenous industrialisation, and facilitating commercialisation. By enhancing public-private cooperation, the collaboration aims to contribute significantly to job creation, economic growth, and the expansion of the extractive industry in the country.
Recognising the pivotal role of energy storage in transitioning to renewable energy sources, the investment in Lithium-Ion energy storage manufacturing represents a crucial stride toward realizing a low-carbon economy. Research indicates that Lithium-Ion energy storage has the potential to reduce CO2 emissions by more than 20 per cent per kilowatt-hour (KWh) capacity compared to traditional lead-acid technology.