The global electric vehicle (EV) market has seen explosive growth over the past decade, with major players like BYD, Tesla, and VW Group leading the charge.
In 2023, Chinese conglomerate, BYD, manufactured the most EVs (3 million), while America's Tesla followed closely with 1.8 million EVs.
More than 95% of the market is dominated by China, the US, and Europe. Interestingly, Africa is not part of the EV conversation involving the 5%.
And while some Nigerians are launching EV startups in the hope of securing a slice of the market for Africa, some stakeholders like Tope Ojo, Chief Executive Officer of Autogig International Resources Limited, feel Nigeria isn't ready for the EVs.
Ojo pointed out infrastructure challenges, such as the availability of electricity and EV technicians.
Interestingly, EVs were also once thought to be an unprofitable niche of the automobile market as they were too expensive to produce and lacked the right infrastructure to support usability. However, technological advancement has made the market viable, and many vehicle manufacturers are considering it.
In Nigeria, some startups are also considering it, and we'll highlight some of them in this article.
EV startups in Nigeria you should know
Producing EVs in a country that seldom produces any kind of automobile is a challenge.
Like its automobile manufacturing market, Nigeria's EV market is still in its infancy, with the country far from making a significant impact on global EV development or manufacturing.
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But Nigerian startups are taking on this challenge head-on by producing EVs locally. Companies like Siltech are leading the way by manufacturing electric vehicles with 60% of their parts and raw materials sourced locally.
This initiative not only supports the local economy but also reduces dependency on imports, showcasing the potential for homegrown innovation in Nigeria's automotive sector despite the numerous challenges the industry faces.
Here are six of the EV startups in Nigeria.
MAX
Year founded: 2015
Total funding: $39.6 million
MAX is one of the most funded EV startups in Africa.
Founded by Adetayo Bamiduro and Chinedu Azodoh, it launched in 2015 as a logistics company, then pivoted to motorcycle ride-hailing in 2017, but was forced to go into the EV market in 2021 after a government ban on commercial motorcycles.
Its flagship EV, the MAX M3, has a top speed of 85 kilometres per hour (km/h) and a medium-range 3.6 kilowatt hour (kWh) battery that can travel 80 km to 110 km on a full charge.
The startup also provides access to a variety of vehicles, including EVs through a subscription model. It also has an EV financing package that makes it possible for transport operators (keke and okada riders) to own EV bikes.
According to its website, more than 45,000 people have become vehicle owners through its vehicle subscription platform. It plans to build out a network of charging and battery swap stations for its EVs.
Jet Motor Company
Year founded: 2018
Total funding: $9 million
In 2020, Jet Motor Company raised $9 million in research capital to build the Tesla of Africa. In 2021, the company founded by Chidi Ajaere partnered with GIG Logistics (GIGL) to launch the first electric cargo vans in Nigeria.
While the total number of EVs produced by Jet Motor Company is unknown, the Nigerian government purchased a number of electric vans from the company.
Reports also indicate that 46 electric cargo vans should have been acquired by GIGL from the company in 2023.
The JET EV van comes with a 107.8 kWh lithium-ion battery that can travel about 300 km on a single charge. It also has stronger shock absorbers, higher ground clearance, and bigger tyres designed specifically for Nigerian roads.
Siltech
Year founded: 2016
Total funding: $3 million
Tolu Williams is the Founder of Savenhart Investment Limited Technology (Siltech), a renewable energy transportation technology company.
The company recently partnered with food delivery startup, Glovo to use its EV products and services for delivery in some parts of Lagos Nigeria.
One of the company's flagship EVs is the three-wheeler Falcon, with a range of 300 km. The company has 10 EV service centres with charging and battery swap stations in Lagos. It has now acquired two manufacturing plants to boost EV production.
Trekk
Year founded: Unknown
Total funding: Unkown
Founded by Isaac Oyedokun, Praise Sakanwi, and Jean-Noël Bayi, Trekk is described as Africa's first electric scooter-sharing platform.
To use the platform, you download the Trekk app, locate a Trekk scooter, scan the QR code on the scooter, and pay to unlock it.
However, it is limited to a certain group of users, such as students or people who commute within a small community.
Oyedokun (CEO) said this was done to guard against theft and the safety of riders. Every community where the scooters are available is geo-fenced so the scooters can't be used outside them.
The scooters are currently available in some Nigerian universities such as Lagos State University and Pan-Atlantic University.
Possible EVs
Year founded: 2021
Total funding: $5 million
Founded in 2021 by Mosope Olaosebikan, Possible EVs was built to deal with misconceptions about EVs in Nigeria and Africa.
It plans to do this with the launch of Nigeria's first-ever electric vehicle taxi service, EV Taxi. According to reports, it has launched an initial fleet of 30 and plans to launch an additional 20,000 by 2028.
Last year, the company revealed that it was testing its EV taxis in Abuja, and had gotten exciting feedback.
The electric taxis can go up to 400 km on a single charge and would be launched in other parts of Nigeria such as Lagos and Akwa Ibom.
EMVC
Year founded: unknown
Total funding: unknown
It is unclear when the Electric Motor Vehicle Company (EMVC) was founded; however, it was first unveiled in 2022.
Founded by Prince Mustapha Audu, the company's EV is known as the Adoja which has two models — Adoja M1 and Adoja M2.
The M2 is a four-wheeled EV with air conditioning, a reverse camera, and a range of 250 km on a single charge.
EMVC and Jet Motor Company are probably the only two EV companies in Nigeria that have four-wheeled EVs fitted with some of the features you'd find in a more expensive and bigger EV like Tesla.
However, most companies' focus on two and three-wheeled EVs is a result of the cost of producing four-wheeled ones. They require bigger batteries, which is about 50% of the cost of producing an EV.
For Nigerian EV startups to produce vehicles on a larger scale and with world-class quality, they'll need more funding and government support.
Tesla would not occupy its position in the global EV market today without over $20 billion in investments and more than $4 billion in government subsidies.
Interestingly, the Nigerian government has a national action plan for the development of EVs. Although it is still a draft, implementing such a plan could help Nigeria secure a slice of the EV market.
Editors note
This article has been updated to show that Siltech was founded in 2016 and has raised $3 million in total funding.
