KEY POINTS
- Global EV demand is surging, creating strong market incentives for countries rich in battery minerals.
- Nigeria’s rare-earth deposits, lithium exploration, and regional market access could position it as a future EV supply-chain hub.
- Experts say success depends on policy reforms, local processing capacity, and strategic international partnerships.
Nigeria’s large deposits of rare-earth minerals such as monazite and neodymium, alongside expanding lithium exploration and early electric-vehicle assembly efforts, are strengthening expectations that the country could become a significant player in the global EV supply chain, according to industry stakeholders.
Data from the International Energy Agency shows worldwide EV sales exceeded 14 million units in 2023, accounting for roughly 18 percent of total vehicle sales.
With annual sales projected to surpass 20 million before 2030, demand for lithium-ion batteries and rare-earth magnets is rising rapidly.
The global EV market is already valued at more than $800 billion, driven by clean-energy transitions and net-zero targets set by major economies.
Nigeria positioning for supply-chain role
As nations compete to secure critical minerals and strengthen domestic production, Nigeria is increasingly presenting itself as a potential supplier of key inputs and a possible manufacturing hub within Africa.
Analysts say the country’s mineral resources, combined with its large consumer base and regional trade advantages, could help it integrate into the EV value chain.
Automotive analyst Tope Adebayo noted that West Africa imports most of its vehicles, arguing that locally produced electric cars could serve both domestic buyers and neighbouring markets under the African Continental Free Trade Area.
The Minister of Solid Minerals Development, Dele Alake, said Nigeria is moving away from exporting raw ore and instead promoting domestic processing.
He stressed that the country cannot remain a raw-material exporter as the world shifts toward clean energy, adding that the government aims to build processing capacity linked directly to manufacturing industries, including electric-vehicle production.
