The Rural Electrification Agency (REA) and the National Agency for Science and Engineering Infrastructure (NASENI) are poised to make a significant stride in climate action by signing a groundbreaking Cooperation Agreement with the SHENZEN LEMI Technology Development Company.
The $150 Million Battery Manufacturing Deal marks a pivotal moment in the global effort towards sustainable energy practices in Nigeria.
The Agreement was signed Friday,
December 8, 2023 under the leadership of the Nigerian Federal Ministry of Power and the China Ministry of Ecology and Environment forms part of the takeaway by Nigeria from the COP 28 in Dubai.
According to a statement, the partnership would facilitate the establishment of a Lithium-Ion Battery manufacturing and processing factory in Nigeria.
This initiative which is backed by a US$150 million investment from LEMI, with operations scheduled to commence in phases, starting from the 2nd quarter of 2024.
The Chinese Ministry of Ecology
and Environment, in collaboration
with the Federal Ministry of Power
in Nigeria, expressed enthusiasm
for being part of this transformative
agreement. The signing of the Cooperation Agreement is anticipated to serve as a pioneer initiative for the Light and Belt Initiative in Africa, aligning with global efforts to drive climate technology development and transfer.
This collaboration will strengthen
NASENI’s mandate under the
Agency’s new leadership to manage the research and development of capital goods, production and reverse engineering to enhance local mass production of standard parts, and services for the nation’s
technological advancement with
a special focus on the Nigerian
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 Nigeria’s ambitious goals
of achieving universal electricity
access by 2030 and net zero
emissions by 2060.
The partnership aims 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 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-Ionenergy
storage has the potential to
reduce CO2 emissions by more
than 20 percent per kWh capacity
compared to traditional lead-acid
technology.
REA and NASENI are actively engaged in the clean and renewable energy sector in Nigeria. The two agencies recently prioritized collaboration between them to underscore a shared commitment to sustainable energy solutions.
Both agencies seized the opportunity presented by their participation in COP-28 to advance the President’s Renewed Hope agenda.
They leveraged the event to demonstrate Nigeria’s commitment to clean and renewable energy development, utilizing the high-level platform to emphasize the country’s alignment with climate action pledges under the Paris Agreement.
During the COP-28 proceedings, NASENI hosted a side event on December 3, 2023, focusing on home-grown technology for rural electrification.
REA on the other hand hosted a side event on December 5, 2023, covering critical areas of Renewable Energy for Inclusive Development and Financing Nigeria’s Energy Access Gap in Last-Mile Communities.
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 US$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 while paving the way for new jobs within the sector as well as local content in the nation’s renewable energy space.
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