NIGERIA is one of the beneficiary countries of $80 billion in clean technology investments by Chinese firms over the past year as they sought new markets to absorb a supply glut, according to a report by Australian research group Climate Energy Finance (CEF).
Released on Sunday, the report said that many countries also deepened their cleantech cooperation with China in the wake of U.S. President Donald Trump’s tariffs, bringing China’s total overseas direct investments in green technology to more than $180 billion since the start of 2023.
Chinese firms dominate supply chains for clean technologies such as critical minerals processing, solar panels, and batteries. Chinese foreign investment in clean energy infrastructure helps create markets for such products.
“China’s got a supply glut when it comes to green technology, like solar panels and batteries, because of a structural supply-demand mismatch, so they need overseas markets to absorb their products,” report author and CEF China engagement lead Caroline Wang said.
That also presented opportunities for emerging economies, including Nigeria, seeking to reduce their dependence on imported fossil fuels, Wang said.
Reuters quoted research from the Net Zero Industrial Policy Lab at Johns Hopkins University, noting that 75% of China’s low-carbon foreign direct investment is in Asia, the Middle East, Africa, and Latin America.
Southeast Asia remained the top destination for Chinese cleantech manufacturing investments, the CEF report found.
There were fewer new solar manufacturing investments there because of U.S. tariffs, but more Chinese investments materialised in renewable power, EVs, and batteries.
The Middle East and North Africa were the fastest-growing investment destinations, driven by national strategies for diversifying away from oil.
Chinese firms increasingly favoured large-scale projects integrating upstream and downstream supply chains, CEF found.
Among the biggest new projects were an $8.28 billion green hydrogen project announced by solar firm Longi Green in Nigeria, and a $6 billion battery factory that is being built in Indonesia.
‘What we’re doing now is making sure that all our material sources come from food, or leftovers from agriculture or the food industry.
Another incentive for emerging economies is “not wanting to miss out on this technological revolution,” Wang said.
“China’s leading the world in the technologies, in the innovation, and if you don’t get into the supply chain quickly, there’s a risk you miss out on innovation opportunities”, Wang added.