The Rural Electrification Agency (REA) and the National Agency for Science and Engineering Infrastructure (NASENI) have signed a $150 million deal for battery manufacturing with Chinese investors.
Malam Mutari Ibrahim, the Director of Promotion and Outreach (PIO) at REA, conveyed this message in a statement issued in Abuja on Friday.
Ibrahim stated that the agreement had been signed with SHENZEN LEMI Technology Development Company.
The Ministry of Power, in collaboration with the China Ministry of Ecology and Environment, orchestrated the signing of the agreement as a consequential development resulting from Nigeria’s participation in COP 28 in Dubai.
He mentioned that the collaboration aims to support the creation of a facility in Nigeria dedicated to manufacturing and processing Lithium-Ion Batteries.
- “The initiative which is backed by a $150 million investment from LEMI is scheduled to commence in phases, starting from the 2nd quarter of 2024.
- “The China Ministry of Ecology and Environment, in collaboration with the Ministry of Power expressed enthusiasm for being part of this transformative agreement.
- “The signing of the cooperation agreement is anticipated to serve as a pioneering initiative for the Light and Belt Initiative in Africa, aligning with global efforts to drive climate technology development and transfer,” he said.
Collaboration to strengthen NASENI core mandate
Continuing, Ibrahim stated that the collaboration aims to reinforce NASENI’s mandate under the agency’s new leadership, emphasizing the management of research and development for capital goods.
The primary focus is on production and reverse engineering to advance the local mass production of standard parts.
He said that the agreement would also enhance services for the nation’s technological advancement with a special focus on the electricity sector.
- “Furthermore, the collaboration underscores REA’s commitment to bridging the climate technology gap and combating the adverse effects of climate change.
- “It also aligns with the country’s ambitious goals of achieving universal electricity access by 2030 and net zero emissions by 2060,” he said.
The partnership, according to Ibrahim, is geared towards fostering the development and transfer of climate technology, promoting indigenous industrialization, and facilitating commercialization.
The overarching objectives include enhancing public-private cooperation, fostering job creation, promoting economic growth, and supporting the extractive industry.
- “Enhance public-private cooperation and contribute to job creation, economic growth, and the extractive industry in the country.
- “Recognizing the crucial role of energy storage in the transition to renewable energy sources, the investment in Lithium-Ion energy storage manufacturing signifies a significant step towards achieving 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 Kilo Watts per hour (KWh) capacity compared to traditional lead-acid technology,” he said
What you should know
Earlier, Nairametrics reported that REA and NASENI signed an MoU on Nigerian community electrification at COP28, in Dubai.
The agreement says that NASENI will help with research and give the right technology to use clean energy better. They want to make sure the electricity in these places lasts a long time and is good for the environment.
On the sidelines of the COP28 summit, Ahmad Salihijo, the Chief Executive Officer of the Rural Electrification Agency said they had already set up more than 100 solar hybrid mini-grid projects and given out over 1.6 million Solar Home Systems across Nigeria.
