Faith Nyasuguta
Nigeria is preparing to commission two major lithium processing factories worth a combined $800 million this year, marking a decisive move away from raw mineral exports and toward domestic value addition.
The announcement came from Minister of Solid Minerals Development, Dele Alake, who said a $600 million lithium facility near the Kaduna-Niger border will be launched this quarter, while a $200 million refinery near Abuja is nearing completion. Two more lithium plants are expected to begin operations in Nasarawa State before the third quarter of 2025.
“Our goal is clear—we’re transforming Nigeria’s mineral wealth into jobs, technology, and sustainable growth at home,” Alake said.
Over 80% of the funding for these projects comes from Chinese firms, including Jiuling Lithium Mining Company and Canmax Technologies. Local investor Three Crown Mines holds the remaining stakes, according to announcements by state governments involved in the projects.
This investment push follows the Nigerian government’s new mining strategy, which prioritizes domestic processing of minerals like lithium, a metal essential to electric vehicle (EV) batteries, solar panels, and other clean energy solutions. Nigeria is estimated to hold large high-grade lithium reserves, as confirmed by a 2022 Geological Survey.
Following the discovery, Chinese company Ming Xin Mineral Separation Nig Ltd. was selected in 2023 by Kaduna State to construct Nigeria’s first lithium-processing facility, with the long-term aim of expanding into EV battery manufacturing.
The shift in policy is a sharp turn from earlier years. In 2022, Nigerian officials reportedly rejected a proposal from Tesla to purchase raw lithium from the country, citing a national policy to stop exporting unprocessed minerals.
“We’re focused on building a self-reliant value chain. Exporting raw materials alone won’t drive long-term economic transformation,” said Ayodeji Adeyemi, special assistant to the mining minister.
Among the key reforms rolled out is a ban on the export of raw lithium, the formalization of artisanal mining operations, which make up a significant part of current extraction, and the creation of a state-run mining company. Investors will be allowed to own up to 75% of this new firm.
With the global lithium market booming and demand for EVs surging, Nigeria’s aggressive move into value-added mineral processing may place it on the map as a key player in the global energy transition.
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