The Federal Ministry of Power and the China Ministry of Ecology and Environment oversaw the signing of a $150 million agreement for the construction of a lithium-ion battery manufacturing plant in Nigeria by the Chinese company SHENZEN LEMI Technology Development.

The agreement was formalized during the United Nations Climate Conference (COP28) in Dubai, as reported in a statement issued by the Rural Electrification Agency in Abuja on Friday.

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According to the statement, the Rural Electrification Agency of Nigeria and the National Agency for Science and Engineering Infrastructure (NASENI) are set to advance climate action through a groundbreaking cooperation agreement with SHENZEN LEMI.

The initiative, supported by a $150 million investment from LEMI, aims to establish a lithium-ion battery manufacturing and processing factory in Nigeria, with operations scheduled to commence in phases starting from the second quarter of 2024.

The collaboration, led by the Nigerian Federal Ministry of Power and the China Ministry of Ecology and Environment, is seen as a pioneering initiative for the Light and Belt Initiative in Africa, aligning with global efforts to drive climate technology development and transfer.

The agreement is expected to reinforce NASENI’s mandate to manage research and development for capital goods, production, and reverse engineering to enhance local mass production of standard parts and services, particularly in the Nigerian electricity sector.

It also reflects the Rural Electrification Agency’s commitment to bridging the climate technology gap and aligns with Nigeria’s goals of achieving universal electricity access by 2030 and net-zero emissions by 2060.

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The partnership is poised to foster the development and transfer of climate technology, promote indigenous industrialization, facilitate commercialization, enhance public-private cooperation, and contribute to job creation, economic growth, and the extractive industry in Nigeria.

Recognizing the pivotal role of energy storage in transitioning to renewable energy sources, the investment in lithium-ion energy storage manufacturing is seen as a significant step toward achieving a low-carbon economy, according to the Rural Electrification Agency.