Nigeria is set to commission two large lithium processing plants this year, marking a pivotal shift in the country’s mining strategy from exporting raw minerals to enhancing local value addition. The announcement was made by Mining Minister Dele Alake, who emphasized the government’s focus on leveraging mineral resources for economic growth and industrial development.
The first facility, a $600 million lithium processing plant near the Kaduna-Niger border, is slated to begin operations this quarter. A second plant, valued at $200 million and located on the outskirts of Abuja, is nearing completion. Both projects are expected to generate employment opportunities, transfer technology, and stimulate manufacturing within Nigeria’s underdeveloped mining sector.
“These plants symbolize our commitment to transforming Nigeria’s mineral wealth into sustainable economic benefits,” Minister Alake stated. “The aim is to create jobs, foster technological innovation, and grow our manufacturing capabilities.”
Chinese firms have contributed over 80% of the investment for these projects, including Jiuling Lithium Mining Company and Canmax Technologies, with Nigerian firm Three Crown Mines holding the remaining shares. Officials from the Chinese investors have not yet commented publicly on the developments.
Further expanding the sector, two additional lithium processing plants are planned for Nasarawa State, adjacent to the federal capital territory, with expected completion before the third quarter of 2025. These efforts come in the wake of a 2022 Geological Survey Agency report revealing significant high-grade lithium deposits across multiple Nigerian states, attracting considerable international interest.
Nigeria’s mining industry currently accounts for less than 1% of the national GDP. To bolster the sector, the government has introduced reforms including restrictions on raw mineral exports, formalisation of artisanal mining — responsible for much of the current extraction — and the creation of a state-owned mining company that permits investors to hold up to 75% equity.
These developments signal Nigeria’s broader ambition to diversify its economy and reduce dependency on oil by capitalizing on its rich mineral resources. With these investments, Nigeria aims to position itself as a key player in the global lithium market, essential for the growing demand in electric vehicles and renewable energy technologies.