Washington is intensifying diplomatic and commercial outreach to Nigeria in order to tap the West African nation’s deposits of rare earths, lithium, cobalt and other minerals deemed essential for electric‑vehicle batteries and defence applications. The move is framed as a response to China’s dominant role in the country’s mining landscape, where Chinese firms have already secured a range of extraction and processing contracts.
U.S. agencies, including the Department of Energy and the U.S. Trade and Development Agency, have announced funding programmes and feasibility studies aimed at fostering joint ventures between American firms and Nigerian partners. Recent high‑level visits by American officials have highlighted interest in establishing supply‑chain links that could feed domestic battery production and reduce reliance on Chinese imports.
Nigeria, for its part, has introduced a revised mining code that offers tax incentives, streamlined licensing procedures and guarantees of greater local content. The regulatory overhaul is intended to attract a broader pool of foreign investors and to develop a domestic processing capacity that has so far been limited. Government officials have signalled a willingness to negotiate terms that balance revenue generation with technology transfer.
Chinese companies, meanwhile, continue to expand their footprint through long‑term contracts with state‑owned enterprises and by financing associated infrastructure such as roads and power stations. Their early entry has given them a logistical advantage and a foothold in downstream processing facilities that are still under development.
Analysts note that the United States faces several hurdles, including Nigeria’s under‑developed transport network, security concerns in mineral‑rich regions and the need to build local technical expertise. Nonetheless, the growing strategic importance of critical minerals is prompting both Washington and Abuja to pursue a more coordinated approach, with the expectation that increased competition could spur investment and accelerate the sector’s growth.
Reporting attribution: based on reporting by The Africa Report — original source: https://www.theafricareport.com/431334/us-plays-catch-up-with-china-in-race-for-nigerias-critical-minerals/.