Nigeria is set to commission two large lithium processing plants this year, marking a major step away from exporting raw minerals and toward building value within the country. Mining Minister Dele Alake announced that a $600 million lithium processing facility near the Kaduna-Niger border will be commissioned this quarter, while a $200 million refinery near Abuja is nearing completion. Two additional lithium plants are expected to become operational in Nasarawa state before the third quarter of 2025.
These projects are part of a broader government strategy to transform Nigeria’s mineral wealth into domestic economic value through job creation, technology transfer, and manufacturing. More than 80% of the funding for the four plants comes from Chinese companies, including Jiuling Lithium Mining Company and Canmax Technologies, with the remaining stakes held by local investor Three Crown Mines.
The push for local processing follows the discovery of significant high-grade lithium deposits across several Nigerian states, which has drawn strong interest from international investors. In response, the government has tightened licensing requirements, making local processing a condition for new mining licenses, and has rejected proposals for the export of unprocessed lithium, including a bid from Tesla in 2022.
Other reforms include restricting the export of raw minerals, formalizing artisanal mining operations, and establishing a state mining company that allows investors to own up to a 75% stake. These measures are intended to boost the mining sector’s contribution to the national economy, which remains under 1% of GDP.
The new lithium plants are expected to help Nigeria move up the value chain in the global battery and electric vehicle industry, with ambitions to eventually manufacture batteries domestically. The government’s approach is to ensure that the country’s mineral resources support sustainable economic growth and reduce reliance on raw material exports.
