Nigeria is preparing to commission two significant lithium processing facilities within 2025, signaling a strategic move away from raw mineral exports toward local value creation, the country’s Mining Minister, Dele Alake, announced on Sunday.
The first of these plants—a $600 million lithium processing factory—is located near the Kaduna-Niger border and is expected to be operational by the end of this quarter. Meanwhile, a second facility, a $200 million lithium refinery near Abuja, is in the final stages of completion. In addition, two more processing plants are planned for Nasarawa state, adjacent to the capital, with commissioning expected before the third quarter of this year.
Minister Alake emphasized that these initiatives are part of Nigeria’s effort to transform its abundant mineral resources into domestic economic growth through job creation, technology transfer, and industrial development. “Our focus is now on leveraging our mineral wealth to generate jobs, advance technology, and stimulate manufacturing within Nigeria,” he stated.
Over 80% of the funding for these projects comes from Chinese investors, including Jiuling Lithium Mining Company and Canmax Technologies, as confirmed by state governors where the plants are sited. The remaining shares belong to local firm Three Crown Mines. Representatives from the Chinese companies have yet to comment on the developments.
This domestic processing drive follows a 2022 Geological Survey Agency report revealing large deposits of high-grade lithium across multiple Nigerian states, which has sparked international investor interest. The plants are part of a larger effort to revitalize Nigeria’s mining sector, which currently contributes less than 1% to the nation’s GDP.
Other recent reforms include limiting exports of unprocessed minerals, formalizing artisanal mining activities that dominate the sector, and creating a state mining company that allows investors to hold up to a 75% stake.
By fostering local processing capabilities, Nigeria aims to move up the value chain in the mining industry and maximize the economic benefits of its mineral wealth.
