Nigeria’s Rural Electrification Agency (REA) and the National Agency for Science and Engineering Infrastructure (NASENI) have signed a memorandum of understanding (MoU) with a Chinese firm, Shenzhen Lemi Technology Development Company Ltd., for the establishment of a $150 million lithium-ion battery manufacturing and processing factory in Nigeria.
According to a statement by REA, the agreement was signed at the ongoing COP28 in Dubai, United Arab Emirates (UAE).
REA said Nigeria’s dedication to the development of clean and renewable energy would be showcased through the collaboration.
Lithium-ion is said to be the most common rechargeable battery chemistry used today. Lithium-ion batteries power devices like mobile phones and electric vehicles.
The agency said that in addition to highlighting Nigeria’s compliance with its climate action pledges under the Paris Agreement, the MoU also places a strong emphasis on home-grown technology for rural electrification.
REA said the agreement seeks to bridge the inclusive financing challenges for Nigeria’s last-mile energy access gaps.
According to REA, the strategic collaboration, with the key objective of facilitating partnership for research and development projects, will enhance the quality, reliability, and affordability of rural electrification solutions, including innovative technologies.
“Leveraging on their partnership, NASENI and REA signed a landmark cooperation agreement with Shenzhen Lemi Technology Development Company Limited of China.
“The landmark MoU was developed with the sole objective of development and establishment of a $150 million lithium-ion battery manufacturing and processing factory in Nigeria.
“This partnership enables agencies such as REA and NASENI to leverage the technological expertise of LEMI to improve the safety and longevity of battery technologies to deliver better, sustainable energy solutions to unserved and underserved Nigerians.
“It will also be paving the way for new jobs within the sector, as well as local content in the nation’s renewable energy space,” the statement read.
According to the statement, the collaboration between REA and NASENI has proven instrumental in unlocking new and transformative opportunities, adding that both organisations are actively engaged in the clean and renewable energy sector in Nigeria.
“The two agencies recently prioritised collaboration between them to underscore a shared commitment to sustainable energy solutions,” the statement further reads.
“Both agencies seized the opportunity presented by their participation in COP-28 to advance the President’s Renewed Hope agenda.”
According to the agency, the move represents a paradigm shift in the energy sector, with the potential to revolutionise the manufacturing sector and bridge the electricity access gap.