For decades, Nigeria has been synonymous with oil production. However, as the global market shifts towards renewable energy and electric vehicles (EVs), the country is now turning its focus to the booming lithium market. Lithium, a key component in rechargeable batteries, is in high demand as the world seeks more sustainable energy solutions. Recognizing this opportunity, Nigeria is tightening its mining regulations and placing value on developing a lithium-rich future.
Lithium is a critical mineral used in the production of batteries for electric vehicles, renewable energy storage systems, and various modern technologies. As the global demand for sustainable energy grows, so does the need for lithium. With large lithium deposits discovered in several Nigerian states, the country is positioning itself to tap into the billion-dollar global lithium market. Countries like Zimbabwe and Mozambique have already made headway, and Nigeria does not intend to lag behind.
In line with this, Nigeria has announced that foreign companies will no longer be permitted to export raw lithium without processing it within the country. The government aims to encourage local value addition, and several foreign companies have already begun establishing lithium processing facilities in Nigeria.
Lithium deposits have been discovered in several states, including Oyo, Kwara, Ekiti, Nasarawa, Kogi, and Cross River. Thor Explorations, a key player in Nigeria’s mining sector, holds over 600 square kilometers of lithium-rich land and has reported positive results from its drilling efforts. Furthermore, Ganfeng Lithium Industry Ltd., a Chinese company, is setting up a lithium processing plant in Nasarawa State. This plant is expected to process 18,000 tonnes of lithium ore per day for use in manufacturing electric vehicle batteries.
Other international companies, such as the UK-based Jupiter Lithium Ltd and US-based ReElement Technologies Corporation, have embarked on lithium exploitation projects across 442 square kilometers in Kaduna State. Their joint venture, the Jupiter Critical Minerals Project, is set to become Nigeria’s first large-scale lithium mining operation.
The Nigerian government, under the leadership of the Minister of Solid Minerals Development, Dele Alake, is making efforts to modernize the mining sector and ensure that raw materials are processed locally. Alake emphasized that the era of exporting unprocessed solid minerals is over. Companies interested in Nigeria’s mineral wealth must add value through local processing and refining plants.
One such example is the Ganfeng Lithium plant in Nasarawa, which will produce battery-grade lithium for electric vehicles. This aligns with the government’s vision of creating sustainable local industries that contribute to economic growth while minimizing environmental impact.
Africa’s lithium market is gaining international attention, and Nigeria has a chance to play a significant role. The Critical Minerals Africa summit, scheduled to take place in Cape Town in November 2024, will spotlight the continent's lithium projects. With its rich lithium deposits, Nigeria has the opportunity to showcase its potential as a key player in the global energy transition.
Market research firm Benchmark Mineral Intelligence has forecasted that Africa's lithium production will triple by 2024, increasing the continent's share of global output from 4% to over 10%. This surge is largely due to significant investments from China, which is responsible for financing 90% of Africa’s planned lithium supply through 2030.
While the focus is on maximizing economic returns from lithium, the Nigerian government is keen to ensure that mining activities do not come at the expense of the environment. There have been warnings to foreign companies, particularly those from China, against engaging in illegal mining practices.
In addition to boosting the economy, projects like the Jupiter Critical Minerals Project aim to enhance local infrastructure by providing access to clean water, electricity, and education scholarships for communities hosting mining operations.
With ongoing efforts to diversify its economy and reduce its reliance on oil, Nigeria’s potential as a lithium powerhouse is significant. The National Integrated Mineral Exploration Project (NIMEP), a $19.6 million initiative, is currently generating valuable data on the country’s mining potential. Preliminary findings have confirmed that Nigeria is indeed a lithium-rich nation, and international investors are taking note.
As the world continues its transition towards renewable energy, Nigeria is strategically positioning itself as a key supplier of lithium, contributing to both the local and global energy markets. The government’s commitment to value addition, combined with international partnerships, places the country on a path toward becoming a major player in the global lithium market.
Nigeria’s move into the lithium market marks a bold step towards diversifying its economy and harnessing its vast mineral resources. By encouraging local value addition, tightening mining regulations, and fostering international partnerships, the country is setting the stage to become a leading lithium supplier in Africa. With the global demand for battery metals on the rise, Nigeria’s lithium industry has the potential to unlock substantial economic growth while supporting the world’s shift towards a more sustainable energy future.