China’s EV pivot to Africa

[WORLD] China is recalibrating its electric vehicle (EV) strategy as rising tariffs from the United States and European Union push the country to seek alternative markets. In a significant shift, China is turning its focus from traditional export destinations to emerging economies, notably in Africa. Earlier this month, Chinese Ambassador to Nigeria Yu Dunhai announced plans to establish EV and battery manufacturing plants in the West African nation—an initiative expected to spur local industrialisation and leverage Nigeria’s substantial lithium reserves, a key resource for EV batteries and electronic devices.

This strategic pivot follows escalating trade tensions with the US and EU, which have imposed punitive tariffs on Chinese EV imports over concerns related to subsidies and market imbalances. These measures have curtailed China’s exports to these regions, compelling Chinese manufacturers to explore less restrictive markets. Africa, with its untapped natural resources and rising demand for clean transportation, is emerging as an attractive alternative for China’s EV sector.

During a meeting with Nigeria’s Minister of Solid Minerals Development, Dele Alake, in Abuja on May 15, Ambassador Yu stated that Chinese firms already mining lithium in Nigeria are now seeking to establish full-cycle local manufacturing. The move reflects Beijing’s broader objective to fortify its supply chain for critical raw materials. With lithium being indispensable for EV battery production, localised processing and assembly could help Chinese firms cut transportation costs, improve supply chain stability, and drive economic growth in Nigeria through job creation and technology sharing.

Beyond economic benefits, the planned manufacturing hubs in Nigeria could serve as strategic entry points into the wider African market. With Africa’s population projected to grow rapidly over the coming decades, the demand for affordable and sustainable transportation solutions is set to rise. By investing in local production capabilities, China is positioning itself to cater to this future demand while deepening economic ties across the continent.

The global race to secure critical minerals has intensified as nations ramp up EV production goals, underscoring the importance of a stable resource supply. China’s engagement in Africa not only reinforces its grip on vital materials like lithium but also enhances its competitiveness in the global EV landscape. By reducing reliance on external sources, China is aiming for a more resilient and self-sufficient supply chain.

Environmental considerations also play a role in this evolving partnership. By promoting EV use in Africa, China supports the continent’s transition to lower carbon emissions, aligning with global climate goals. The collaboration could pave the way for similar ventures with other African nations, fostering sustainable development and driving innovation in green technology.