Nigeria is set to launch two lithium processing plants backed by Chinese investment this year

Nigeria’s mining minister said on Sunday that the government will be commissioning two large lithium processing units this year, signaling a move away from exporting raw minerals and toward generating value domestically.

The facilities, which were primarily financed by Chinese investors, have the potential to help Nigeria turn its enormous natural resources into jobs, technology, and increased manufacturing. According to Mining Minister Dele Alake, a $200 million lithium refinery on the outskirts of Abuja is almost finished, and a $600 million lithium processing factory close to the Kaduna-Niger border is scheduled to be put into service this quarter. According to the minister, before the third quarter of 2025, two more processing facilities are anticipated in Nasarawa state, which is adjacent to the capital Abuja. “We are now focused on turning our mineral wealth into domestic economic value – jobs, technology, and manufacturing,” Alake stated. Separate declarations by the governors of the states where the plants are located reveal that Chinese companies, such as Canmax Technologies (300390.SZ) and Jiuling Lithium Mining Company, have contributed more than 80% of the funding for the four facilities.

Three Crown Mines, a local investor, owns the remaining shares. The Chinese companies refrained from commenting right away. Following a 2022 research by Nigeria’s Geological Survey Agency that attracted significant worldwide attention by identifying substantial reserves of high-grade lithium throughout six Nigerian states, there is a drive for domestic processing. These changes are a part of Nigeria’s larger efforts to improve its mining industry, which is currently undeveloped and accounts for less than 1% of the country’s GDP. Restricting the export of raw minerals, formalizing artisanal mining operations—which make up the majority of present extraction—and creating a state mining company in which investors can acquire up to a 75% interest are some of the other measures implemented.