Nigeria to open two lithium processing plants
Nigeria is set to launch two significant lithium processing facilities this year, signaling a major shift from exporting raw materials to developing in-country value chains. According to Mining Minister Dele Alake, this move is designed to stimulate job creation, enhance local manufacturing capabilities, and promote technological growth.
One of the facilities a $600 million project located near the border of Kaduna and Niger states is scheduled for commissioning in the second quarter of 2025. Another refinery, valued at $200 million and situated close to Abuja, is also nearing completion. Additionally, two more processing plants are planned for Nasarawa State, which lies adjacent to the capital, and are expected to be operational before the end of the third quarter.
Economic value
Minister Alake emphasized that the new facilities are part of the government’s commitment to adding value to Nigeria’s natural resources rather than exporting them in raw form. “Our focus is now on creating economic value from our mineral resources through local job creation, manufacturing, and the development of technology,” he said.
Chinese investors have played a leading role in financing these initiatives, contributing over 80% of the total investment. Companies such as Jiuling Lithium Mining Company and Canmax Technologies are among the key financiers, while local firm Three Crown Mines retains minority ownership in the projects.
These developments follow a 2022 study by the Nigerian Geological Survey Agency, which confirmed substantial high-grade lithium deposits in several states, sparking international investment interest. In response, Nigeria has enacted a series of reforms in the mining sector, including limiting the export of unrefined minerals, formalizing artisanal mining activities, and establishing a national mining company where private investors can own up to 75% equity.
Although mining currently accounts for less than 1% of Nigeria’s GDP, these efforts reflect a broader push to diversify the economy and leverage the country’s rich mineral endowment for sustainable growth.
