GCL Group, Swiber Africa Sign New Energy, Lithium Framework Deal in Dubai

GCL Group of China and Swiber Africa (Nigeria) Group have signed a New Energy Industry Framework Cooperation Agreement aimed at advancing Africa’s next-generation energy systems and building a lithium battery value chain, with Nigeria as a key focus.

The agreement was signed on January 25 in Dubai, United Arab Emirates, by Chairman of Swiber Africa Group, Dr.

Under the framework, both parties will pursue in-depth collaboration in energy system development, strategic lithium resource development, and broader industrial chain cooperation.

The deal represents a significant milestone in strengthening practical cooperation between China and Nigeria and aligns with GCL’s international expansion strategy under China’s Belt and Road Initiative.

Nigeria, one of Africa’s largest economies, continues to grapple with persistent power shortages and a fragile electricity grid, challenges that have constrained industrial growth and living standards.

Against the backdrop of the global energy transition and deepening China–Africa cooperation, GCL is drawing on over two decades of experience in integrated oil, gas, and green energy development across African countries, including Ethiopia and Djibouti.

The company plans to support Nigeria in developing a new-generation power system while also advancing the lithium battery industry chain, thereby expanding its strategic presence along key Belt and Road corridors.

As part of the power sector collaboration, GCL will deploy internationally advanced, high-efficiency clean power generation technologies combined with scenario-based system solutions. Central to this effort is a full-time-scale virtual power plant system, already in operation at the China–Singapore Suzhou Industrial Park, which achieves load regulation accuracy of up to 94 percent.

The system is expected to deliver intelligent energy management for Nigeria, offering capabilities ranging from millisecond-level rapid response to medium- and long-term precise forecasting.

The initiative will be aligned with Nigeria’s Presidential Power Initiative (PPI), with plans to develop major projects including 3 gigawatts (GW) of gas-fired power plants, 4 GW of integrated wind and solar projects, as well as hydropower and coal-fired power stations.

In parallel, grid upgrade projects will be implemented to establish a highly coordinated “generation–transmission–distribution–consumption” network, supporting Nigeria’s transition from manual to intelligent power system control.

Lithium resource development and the establishment of a full lithium industry chain form another core pillar of the cooperation. As global demand for lithium batteries continues to surge, lithium has become a strategically critical resource.

Although Nigeria has significant lithium reserves, development has largely been limited to low-value activities such as raw ore extraction and preliminary processing, with challenges including grade volatility and idle capacity hindering full value realization.

In line with Nigeria’s policy to strengthen local lithium processing from 2026, GCL will introduce advanced mining and smelting technologies to boost value addition. The partners plan to jointly develop a lithium carbonate smelting facility in Abia State, creating a closed-loop lithium industry chain covering resource security, production and operations, and global exports.

The model mirrors GCL’s successful establishment of a full natural gas value chain in Ethiopia and is also expected to support the company’s domestic industrial layout. GCL is already a major global player in lithium battery materials, with large-scale lithium iron phosphate (LFP) production facilities in Renshou and Leshan, Sichuan Province.

Access to high-quality lithium resources in Nigeria is expected to provide GCL with a stable supply of premium raw materials, enabling efficient global coordination between resource development and production capacity while supporting Nigeria’s ambitions in the clean energy and battery materials sector.