Lithium race: Will Nigeria secure strong investments?

Guardian Nigeria

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00:00Investors have their eyes fixed on Africa's lithium deposit, and Hydro is not left out

00:04of the action as the critical mineral remains a key ingredient in the global race towards

00:09electric vehicles and renewable energy solutions.

00:12Can the country leverage the right policies and strategic partnerships to future-proof

00:16this resource for sustainable development?

00:18Well, Mr Fahadu, the Chief Executive Officer of Electric Motor Vehicle Company, joins me

00:23now for more on this.

00:24Thanks a lot for joining us on the show today.

00:26And that's the big question really, Mr Fahadu, at this moment.

00:28Now we're looking at whether or not we can future-proof this critical mineral that we

00:32have deposited here in the continent.

00:35But for you now, how would you assess our positioning at this moment on the back of

00:39the individual national agenda, and then how we're speaking as a collective to ensure that

00:45whatever investment we are eyeing from the global space and then narrowing down into

00:50the different countries here, we are taking the right steps.

00:54We are strategic, we are tactful, and we are ensuring that sustainable development

00:59comes out of all of these at the end of the day.

01:02Thank you very much for having me here, and good afternoon to the world and to Africa.

01:08Basically, I think Nigeria has proven deposits of lithium, especially in Kogui State, Nasarawa

01:15State, Niger, and other states around the Middle Belt, and we're at an infancy stage

01:22in terms of the development of the lithium sector.

01:25We have over 20 million tons of proven reserves, so it's very important.

01:30And Nigeria has one of the largest deposits.

01:33Critical minerals are very essential towards the development of new technology, gadgets,

01:39all our smartphones, everything, and future technologies are dependent.

01:44Electric vehicles, where we play a critical role, being the largest e-mobility players

01:48in Nigeria, is also critical with our need for lithium-ion batteries, lithium-phosphate

01:53batteries.

01:54So lithium is a critical element that is needed for the development, and Nigeria, because

01:59of how well-positioned we are in terms of the African market, in terms of how our ability

02:06to, I guess, leapfrog technology, I think that with the proper investment in this sector,

02:12Nigeria can make a huge impact in not just Africa, but in the world.

02:16If you look at, for example, what we're talking about, electric vehicles, today new technology

02:23requires a lot of lithium deposits, and because Nigeria is not, at this stage, fully developing

02:28it, we cannot key into our full potential.

02:31There's a factory that has been started by the Kaduna State Government that is the only

02:36factory actually doing some level of processing.

02:38We had a commission last day in Nassara State as well now, and this also brings the conversation

02:42into how is Nigeria also pacing itself, to ensure that we have all of the deliverables

02:48coming at the right time, because at the end of the day, when we also look at the quest

02:51or the race for this lithium rush here in Africa, it also has inherent risks.

02:57We've had conversations as to how Nigeria also countered Tesla in terms of their proposal

03:01earlier on in 2022, but going forward now, how do we counter the risks and look at the

03:06prospects ahead?

03:07Just to clarify that the investment in Nassara State is actually mining, it's carried out

03:12by Avatar.

03:13Avatar, one of the largest investors in lithium, but again, it's more lithium mining rather

03:19than processing.

03:20Processing, yeah.

03:21Everything has to do with actually adding value, so we must be able to add value locally.

03:26That would create jobs, help in establishing safe mining practices, these sustainability,

03:33these are very critical for us to meet our 2016 net zero target.

03:37It's very important.

03:38Nigeria needs to take that step forward, knowing that we hold a vast majority of the deposits

03:45in Africa.

03:46It's very critical we play that role.

03:49That is very important in the chain of what we're doing.

03:53If we're able to pass the right policies that encourage local investment by giving tax incentives,

03:59giving a lot of incentives to the local players, bringing in foreign investors and merging

04:04them, creating a marriage between local players and foreign players, I think it would be very

04:08essential.

04:09That would be a bigger muscle.

04:10Now, let's talk about private investment.

04:11You're a player there, EMVC.

04:12Now, what's the near-term plan and how are you also looking to take opportunities here?

04:17Because at the end of the day, we have to also look at how we're also leveraging technology

04:20around battery technology, how are we improving, upskilling at this moment.

04:25So what's EMVC doing right now?

04:27What's on the table and near-term expansion plans?

04:30Thank you very much for that.

04:31I think that's an essential question.

04:33We are doing it two-folds.

04:35One is embedding a lot of technology in our vehicles, so like battery management.

04:41In your fleets, yeah.

04:42Yes, in our fleet of vehicles, battery management system.

04:45So if you're here, for example, you can open our app, see the performance of your vehicle,

04:49see how your batteries are performing, different things in that category.

04:53We're doing that part.

04:54And then where we're thinking of going into next is recycling of the actual lithium batteries

05:00that are available in-country, because it's one thing to produce these products out of

05:07the raw materials.

05:08It's another thing to make sure that it's sustainably disposed of or reused.

05:12This is where having a recycling plant comes into play.

05:16This is the angle we want to take it from.

05:18The cost of investment is slightly lower than if you were to invest wholly in the entire

05:23value chain.

05:24So I must add that there are only two, three companies in the world, and mainly based in

05:30China, CATL, BYD, developing lithium-ion phosphate batteries from the raw materials.

05:38Most people just focus on one part of the value chain.

05:41So it's very important that Nigeria identifies the part of the value chain that we want to

05:45play in first.

05:47From there, then we can begin to develop the entire value chain.

05:51And then because a lot goes in from the raw materials all the way to the actual finished

05:56battery that goes into your electric vehicle or your renewable home system.

06:00So it's very critical.

06:01Well, I'd love to have touch on your charging point as well now and how you're also pricing

06:05this energy.

06:06But in a wrap, 30 seconds, how are you doing that right now?

06:09To be honest, we're working with, okay, there are a number of state governments, for example,

06:13that are procuring the vehicles from us.

06:15So as EMVC, we're going about deploying the charging stations.

06:21And the good thing about it, I think this is what a lot of people are unaware of, that

06:26as long as you have the sun, as long as you're in a location where the sun is, you actually

06:32have, yes, you actually have the ability to actually charge and recharge your vehicle

06:37because it's a battery system.

06:39So if you have a phone in Nigeria and it's working, you can have an electric vehicle

06:44that is working.

06:45And this transition will help develop the industry, not just for EVs, but other critical

06:50minerals that are essential in all new technologies today.

06:53Well, we'll have to leave the conversation here for now, Mustafa.

06:55Thanks a lot for your time on the show today.

06:57That was Mustafa Aldo, the Chief Executive Officer of Electric Motor Vehicle Company.

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