NIGERIA EYES EV SUPPLY CHAIN DOMINANCE WITH $800M LITHIUM PLANT INVESTMENT

The surge in lithium infrastructure follows the 2022 discovery by the Nigerian Geological Survey Agency of vast high-grade lithium deposits across six states.

Nigeria Lithium processing plant Electric vehicle Battary manufacture Africa Investment.
Lithium Processing Plant
Lithium Processing Plant


In a bold move to reposition itself as a global player in the electric vehicle (EV) and battery manufacturing supply chain, Nigeria is set to commission two large-scale lithium processing plants in 2025. With a combined investment of $800 million, primarily backed by Chinese companies, the facilities mark a strategic pivot from raw mineral exports to value-added production and industrialization.

Minister of Solid Minerals Development, Dele Alake, announced on Sunday that the upcoming lithium plants are at the heart of Nigeria’s mining sector transformation agenda. “We are now focused on turning our mineral wealth into domestic economic value jobs, technology, and manufacturing,” said Alake

The flagship facility, a $600 million lithium processing plant near the Kaduna-Niger state border, is on track to be commissioned within the current quarter. A second, $200 million refinery near Abuja will follow closely, with construction nearly complete.

Beyond these, two additional plants in Nasarawa State are scheduled for launch before Q3 2025, bringing the total number of new lithium facilities to four. More than 80% of the funding for these projects comes from Chinese investors, including Jiuling Lithium Mining Company and Canmax Technologies, while the Nigerian firm Three Crown Mines holds the remaining stake.

This surge in lithium infrastructure follows the 2022 discovery by the Nigerian Geological Survey Agency of vast high-grade lithium deposits across six states. The revelation sparked a wave of global investor interest, with Nigeria emerging as a promising alternative to supply chains currently dominated by China and the Democratic Republic of Congo.

These developments are part of broader mining reforms under the current administration, which include restrictions on unprocessed mineral exports, formalization of artisanal mining, and the creation of a national mining corporation open to up to 75% foreign equity.

With global demand for lithium expected to skyrocket in the coming decade, Nigeria’s strategic shift toward domestic refining and manufacturing could redefine its economic trajectory and its role in the global clean energy economy.

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