Nigeria Positions Itself for the $800 Billion Global EV Market

Nigeria’s abundant deposits of rare-earth elements such as monazite and neodymium, along with growing lithium exploration and early domestic EV assembly efforts, are strengthening the country’s prospects in the global electric vehicle (EV) value chain.

According to the International Energy Agency (IEA), global EV sales surpassed 14 million units in 2023, representing about 18% of worldwide car sales, with projections suggesting sales could exceed 20 million annually before 2030.

Analysts say Nigeria’s mineral wealth, combined with regional trade advantages and domestic demand, could position the country as a supplier of critical inputs and a manufacturing hub in Africa.

Industry Perspectives and Strategic Opportunities

Industry stakeholders emphasise that integrating mineral resources with manufacturing capacity is key to Nigeria’s EV ambitions. Automotive analyst Tope Adebayo highlighted Nigeria’s potential to supply competitively priced electric vehicles to both local and regional markets under the African Continental Free Trade Area.

The Minister of Solid Minerals Development, Dele Alake, said the government aims to shift from exporting raw minerals to supporting local processing and linking it to manufacturing, including EV production.

Experts caution, however, that developing battery manufacturing infrastructure and EV assembly capabilities will require significant investment, policy reforms, and partnerships with established international manufacturers.

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With Nigeria’s population of about 240 million and an installed vehicle assembly capacity of over 400,000 units annually under the National Automotive Industry Development Plan, the country has both the demand and foundation to expand its EV sector, but much work remains to move beyond raw mineral exports to fully realised local production.