Nigeria is poised to inaugurate two major lithium processing plants this year, signalling a strategic move away from the export of raw minerals towards enhancing domestic value.
The Minister of Mining, Dele Alake, said the facilities, backed by Chinese investors, are expected to catalyse job creation, technological advancements and manufacturing growth within Nigeria.
A $600m (N949.66bn) lithium processing plant near the Kaduna-Niger border is scheduled for commissioning within this quarter, according to Alake.
Additionally, a $200m lithium refinery on the outskirts of Abuja is approaching completion, the report said.
These plants are part of Nigeria’s commitment to leveraging its extensive mineral wealth for economic development.
The Minister revealed plans for two more processing plants in Nasarawa state, adjacent to the capital Abuja, due to be operational before the third quarter of 2025.
Chinese companies including Jiuling Lithium Mining Company and Canmax Technologies have provided more than 80 per cent of the financing for the four facilities, as disclosed by governors from the respective states hosting the plants.
The remaining shares are held by a local company, Three Crown Mines. The Chinese partners have not yet commented on this development.
“We are now focused on turning our mineral wealth into domestic economic value – jobs, technology and manufacturing,” Alake was quoted as saying.
The focus on domestic processing follows a 2022 study by Nigeria’s Geological Survey Agency, which identified substantial high-grade lithium deposits across several Nigerian states, sparking significant international interest.
These discoveries are integral to Nigeria’s broader reforms aimed at revitalising its underdeveloped mining sector, which presently contributes less than 1 per cent to the national gross domestic product.
Nigeria has introduced other measures including the restriction of unprocessed mineral exports, formalising artisanal mining and establishing a state mining company offering up to a 75 per cent stake to investors.
In April last year, the Nigerian Government announced that new mining licences would be granted exclusively to companies with plans for local mineral processing, marking a departure from the long-standing policy of exporting unprocessed raw materials.
A government spokesperson highlighted the objective to maximise the value derived from Nigeria’s solid mineral deposits