Nigeria opens West Africa’s biggest lithium processing plant in shift from raw exports

…eyes value-added mining economy

President Bola Tinubu, on Thursday, inaugurated what is described as West Africa’s largest lithium processing plant in Nasarawa State, marking a significant milestone in Nigeria’s drive to shift from exporting raw minerals to domestic value addition and industrial manufacturing.

The facility, located in the Endo community in the Nasarawa Local Government Area, has a processing capacity of 6,000 metric tonnes of lithium ore per day and an estimated 3 million metric tonnes annually.

According to the operators, the project has already generated more than 1,000 direct jobs and over 2,000 indirect employment opportunities, underscoring its potential contribution to Nigeria’s industrialisation agenda.

Represented by Kashim Shettima, the Vice President of Nigeria, Tinubu said the project aligns with the Federal Government’s strategy of positioning the solid minerals sector as a key driver of economic diversification, job creation, and export earnings.

He said that while Nigeria possesses abundant mineral resources, sustainable prosperity can only come through deliberate investments in processing, manufacturing and industrial development rather than dependence on raw mineral exports.

“Natural resources may be a blessing, but only vision can turn them into wealth. Only institutions can protect that wealth. Only industry can multiply it, and only people can give it meaning,” Tinubu said.

The president noted that the global energy transition has elevated lithium into one of the world’s most strategic minerals because of its critical role in battery production, electric vehicles, and renewable energy storage systems.

He described the commissioning of the Diamond New Energy lithium processing plant as evidence of growing investor confidence in Nigeria’s economic reforms and a demonstration that the country is moving beyond mineral extraction to value-added production.

“A factory is never just a building. It is where policy becomes employment, where investment becomes production, and where hope begins to acquire structure,” he said.

Tinubu added that industrial investments such as the Nasarawa plant will deepen local enterprise development, enhance skills transfer and strengthen Nigeria’s competitiveness in the global critical minerals value chain.

The President also commended Abdullahi Sule, the executive governor of Nasarawa State, for creating an investment-friendly environment that has attracted major mining projects into the state, describing Nasarawa as a model for responsible extractive industry development.

According to him, sustained peace, effective leadership and sound institutions remain essential ingredients for attracting long-term investments into the mining sector.

Governor Sule described the commissioning as another milestone in Nasarawa State’s emergence as one of Nigeria’s leading mining investment destinations.

He thanked Diamond New Energy for choosing the state despite competition from other mining jurisdictions, assuring investors of continued security, policy support and an enabling business environment.

Sule highlighted Nasarawa’s extensive mineral endowment, including commercially viable deposits of lithium, lead, zinc, copper, iron ore, gold, marble and gemstones, alongside vast agricultural potential and proximity to the Federal Capital Territory, which he said provide competitive advantages for industrial development.

He also acknowledged the support of the host community in Endo, saying their patience and cooperation were instrumental to the successful execution of the project.

Dele Alake, minister of solid minerals development, said the commissioning validates the federal government’s policy requiring investors to process minerals locally before export.

He explained that the policy is designed to increase domestic manufacturing, create skilled employment, expand technology transfer and maximise economic returns from Nigeria’s mineral resources.

According to the minister, the government’s long-term objective is to build a complete lithium value chain capable of producing batteries, electric vehicles, solar panels and other energy technologies within Nigeria.

“Our goal is to begin producing lithium batteries, electric vehicles, mobile phones, solar panels and every technology that depends on lithium. We want to produce them in Nigeria,” Alake said.

He added that Nigeria’s local value-addition policy is increasingly attracting international attention, with several African countries beginning to adopt similar approaches to mineral beneficiation.

Speaking on behalf of Diamond New Energy and its partners JULING and CANMAX, Ambassador Yu Chongqiang said the company believes Nigeria should play a leading role in the global critical minerals industry through responsible mining, local processing and industrial innovation.

He said beyond mineral extraction, the company has invested in modern processing facilities, workforce development, infrastructure, environmental management and partnerships with host communities.

According to him, the completion of processing facilities in both Ogun and Nasarawa states forms part of a broader strategy to establish an integrated industrial platform capable of supporting local manufacturing, strengthening domestic supply chains and contributing to Africa’s clean energy transition.

The commissioning comes as Nigeria intensifies efforts to attract investments into its solid minerals sector, leveraging rising global demand for critical minerals such as lithium, driven by the rapid expansion of electric vehicles, renewable energy technologies and battery manufacturing.

This version follows BusinessDay’s news style by leading with the investment and economic impact, reducing lengthy quotations, emphasising policy and industry implications, and ending with broader market context. It is suitable as a front-page business news report or as the basis for a longer enterprise story.