Nigeria Unveils $800M Lithium Processing Powerhouse This Year

Nigeria is set to launch two major lithium processing factories this year, marking a significant shift from simply exporting raw materials to building up its own processing capabilities. This year alone, the nation is set to open two major lithium processing factories, with more on the way.

Mining Minister Dele Alake announced that a $600 million processing plant near the Kaduna-Niger border is expected to be up and running this quarter. Plus, a $200 million lithium refinery outside Abuja is nearly finished. Alake also revealed plans for two additional lithium plants in Nasarawa state, slated for completion before the third quarter of 2025. "We're now focused on turning our mineral wealth into domestic economic value—jobs, technology, and manufacturing," Alake stated, highlighting the nation's new strategy.

A significant portion of the funding for these four plants, over 80%, comes from Chinese companies like Jiuling Lithium Mining Company and Canmax Technologies. Local investor Three Crown Mines holds the remaining stakes. This investment underscores the increasing global demand for lithium, a vital component in electric vehicles, solar panels, and other green energy technologies.

A 2022 study by Nigeria's Geological Survey Agency identified substantial high-grade lithium deposits across several Nigerian states, attracting considerable international interest. Following these discoveries, Kaduna State selected China’s Ming Xin Mineral Separation Nig Ltd. in 2023 to develop Nigeria's first lithium-processing plant, with an ambitious goal of eventually manufacturing batteries for electric vehicles (EVs).

The Nigerian government has made its stance clear: value must be added domestically. In a notable move, the government reportedly turned down a proposal from Tesla in 2022 to purchase raw lithium, explaining that it didn't align with Nigeria's evolving mining policies. Ayodeji Adeyemi, special assistant to the minister of mines and steel development, confirmed this decision, emphasizing the government's commitment to building a robust local industry.

These developments are part of broader reforms in Nigeria's mining sector. The government has banned the export of unprocessed minerals and is working to formalize artisanal mining operations, which currently account for a significant portion of extraction. Additionally, a new state mining firm is being established, allowing investors to hold up to a 75% stake.

Posted on: Wed May 28 2025 Back to posts