Keypoints:
- Nigeria to open $800m lithium plants in 2025
- Facilities backed by Chinese investors and local firms
- Part of major mining reforms to boost value addition
NIGERIA will commission four major lithium processing plants in 2025 as part of an $800 million investment drive aimed at transitioning from raw mineral exports to domestic value addition, the country’s mining minister announced on Sunday.
The move, described as a turning point for the nation’s underutilised mining sector, is designed to create jobs, strengthen local manufacturing, and deepen Nigeria’s role in the global clean energy supply chain.
Speaking in Abuja, Mining Minister Dele Alake confirmed that a $600 million plant near the Kaduna-Niger border will be inaugurated this quarter, while a $200 million refinery near Abuja is nearly complete. Two more facilities are expected to open in Nasarawa state before the third quarter of 2025.
‘We are now focused on turning our mineral wealth into domestic economic value—jobs, technology, and manufacturing,’ Alake said.
Chinese investors lead funding push
More than 80 percent of the funding for the four plants has come from Chinese companies, including Jiuling Lithium Mining Company and Canmax Technologies, according to state government disclosures. Local mining company Three Crown Mines holds minority stakes in the projects.
The investment surge follows a 2022 geological survey that revealed high-grade lithium deposits across at least six Nigerian states, triggering strong international interest in the country’s strategic mineral resources.
Lithium, a core material in electric vehicle batteries and energy storage technologies, is now central to Nigeria’s bid to diversify its economy beyond oil.
Sector overhaul targets GDP growth
The plant openings are part of broader reforms aimed at reviving Nigeria’s mining industry, which currently contributes less than 1 percent to the country’s GDP. Alake said new policies are focused on curbing mineral smuggling, attracting investment, and formalising artisanal operations.
Recent reforms include:
- Banning unprocessed mineral exports
- Formalising artisanal and small-scale mining
- Establishing a national mining corporation with up to 75 percent private investor participation
Officials say these measures are designed to improve transparency, increase government revenue, and develop a domestic mineral processing industry that can compete globally.
Crackdown on illegal mining
Meanwhile, in a related crackdown, a Nigerian court in Jos has sentenced four Chinese nationals for engaging in illegal mining. According to TRT Global, the individuals were also ordered to be deported and barred from re-entry after serving their jail terms—signalling tougher enforcement of Nigeria’s new mining laws.
With demand for lithium continuing to climb worldwide, Nigeria’s move to retain more of the value chain at home signals a new phase in its industrial strategy—one that could reshape its place in global energy markets.
