In a groundbreaking step toward transforming Nigeria’s economy, two massive lithium processing plants backed by Chinese investors are set to launch this year, signaling a shift away from the country’s long-standing reliance on raw mineral exports. These projects are designed to capture more value domestically by refining one of the world’s most sought-after minerals — lithium, a key component in electric vehicle batteries and other green technologies — instead of simply shipping raw materials abroad.
The first of the two facilities, valued at $600 million, is located near the Kaduna-Niger state border and is expected to begin operations this quarter. The second plant, with an investment of $200 million, is nearing completion on the outskirts of Abuja. Combined, they represent one of the largest foreign direct investments in Nigeria’s mining sector in recent years, with Chinese firms like Jiuling Lithium Mining Company and Canmax Technologies providing over 80% of the funding. Local Nigerian company Three Crown Mines holds a minority stake, adding a domestic anchor to the international partnership.
Nigeria’s Minister of Solid Minerals, Dele Alake, emphasized that these projects are part of a larger national strategy to boost local job creation, promote technology transfer, and establish the country as a global player in the clean energy transition. According to Alake, Nigeria can no longer afford to watch foreign buyers reap the rewards of its mineral wealth by merely exporting unprocessed materials. Instead, the government is determined to harness its natural resources to build domestic industries that create real economic value.
This surge in lithium-focused development comes after a 2022 report from the Nigerian Geological Survey Agency identified extensive high-grade lithium deposits across several states, attracting major international attention. As global demand for lithium skyrockets, particularly due to the electric vehicle boom, Nigeria’s rich deposits have become highly attractive to investors looking to secure stable supplies.
Beyond the two plants scheduled for 2025, the government has announced plans for two additional lithium processing facilities in Nasarawa State, adjacent to the Federal Capital Territory, which are expected to be commissioned before the third quarter of next year. These initiatives reflect broader reforms aimed at revitalizing Nigeria’s underperforming mining sector, which despite its vast potential, currently contributes less than 1% to the nation’s GDP.
In parallel, the government is implementing policies to restrict the export of unprocessed minerals, formalize artisanal mining operations, and establish a national mining company where private investors can own up to a 75% stake. The goal is to shift Nigeria’s mining landscape from one dominated by small-scale, informal activities into a structured, globally competitive sector that fuels industrial growth.
The commissioning of these Chinese-backed lithium plants marks a pivotal moment for Nigeria’s ambitions to play a bigger role in the global clean energy supply chain. As countries around the world race to secure the minerals critical for renewable energy and battery storage, Nigeria’s decision to process its own lithium could position it as a vital hub in the new energy economy.
While challenges remain — including ensuring environmental sustainability, safeguarding local communities, and managing foreign interests — the move signals a determined push to unlock the full economic potential of Nigeria’s vast mineral resources. Many experts believe that if managed well, these lithium projects could become a blueprint for how African nations leverage their natural wealth not just for export, but for sustainable, long-term national development
