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Nigeria, China Firms Seal EV Manufacturing Deal to Build 70,000-Vehicle Capacity in Lagos, Abuja

Nigeria’s drive to become a leading force in Africa’s electric vehicle industry has gained fresh momentum following a landmark partnership between Launch Design Shanghai and Hybrid Motors Nigeria to establish electric vehicle manufacturing plants in Lagos and Abuja.

The strategic agreement, signed in Shanghai on May 8, 2026, is expected to strengthen Nigeria’s local automobile manufacturing industry, accelerate technology transfer, create thousands of jobs and position the country as a regional hub for sustainable mobility and automotive exports across West Africa.

At the centre of the collaboration is “Acely,” Hybrid Motors Nigeria’s indigenous electric vehicle brand designed specifically for Nigerian roads and driving conditions. Under the partnership, both companies will jointly develop manufacturing and assembly operations with a projected combined production capacity of 70,000 vehicles annually when operations reach full scale.

The Lagos facility, situated along the Lekki-Epe corridor, will serve as the flagship production and assembly hub with an estimated annual capacity of 50,000 units. Industry analysts say the plant’s proximity to the Lekki Deep Sea Port could significantly improve export logistics and support vehicle distribution to regional markets including Ghana, Benin, Togo and Côte d’Ivoire.

A second manufacturing facility will be developed within the Free Zone Business Area of Centenary Economic City in Abuja. The plant is projected to produce 20,000 vehicles annually and will focus on supplying Northern Nigeria and neighbouring Sahel markets.

Stakeholders in the automotive sector believe the dual-facility structure could reduce transportation and logistics costs, strengthen regional supply chains and stimulate industrial development in multiple economic corridors across Nigeria.

Speaking during the signing ceremony, Chief Executive Officer of Hybrid Motors Nigeria, Mr. Jubril Arogundade, described the partnership as a transformative moment for Nigeria’s automotive industry and a major step toward building a globally competitive local manufacturing ecosystem.

“This partnership is more than a business agreement; it is a commitment to building Nigeria’s automotive future,” Arogundade said.

“With Acely, we are demonstrating that world-class vehicles can be conceived, designed and assembled in Nigeria by Nigerians for Nigerians. Our collaboration with Launch Design brings international engineering expertise directly into our operations while ensuring the vehicles remain tailored to local realities.”

Chief Executive Officer of Launch Design, Mr. Wang Xun, said the agreement combines global engineering expertise with local market understanding to create a strong foundation for long-term growth.

According to him, the collaboration extends beyond vehicle production and aims to establish a broader industrial ecosystem around electric mobility, innovation and manufacturing development in Nigeria.

Industry observers say the partnership reflects growing international confidence in Nigeria’s industrial potential and aligns with broader efforts across Africa to transition toward cleaner transportation systems and green industrialisation.

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