Nigeria’s vast lithium reserves, estimated to be worth over $34 billion, is attracting global demand.
Lithium is a key component in the production of batteries for electric vehicles (EVs) and renewable energy storage systems. Nigeria is positioning itself to become a major player in the global lithium market.
The growing interest in Nigeria’s lithium reserves comes as countries and companies worldwide scramble to secure supplies of the mineral, which is essential for powering the green energy revolution.
“Lithium is topping the charts in terms of interest, and we have seen the springing up of lithium factories in Nigeria already,” Segun Tomori, special assistant on media to Dele Alake, minister of solid minerals development, said in a Twitter Space monitored by BusinessDay.
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He noted, “The attention of the international mining industry is focused on lithium because lithium is a critical raw material for the production of solar panels and electric vehicles ”
According to Tomori, the minister inaugurated a lithium factory in 2024.
He said so far, two factories have been commissioned, with another currently under construction.
“We did the groundbreaking for another lithium factory in Abuja that would come up this year, so lithium factories are springing up,” he said.
Analysts predict that the global lithium market could grow exponentially over the next decade, driven by the rapid adoption of EVs and renewable energy technologies.
Data from a global Future Market Insight showed the lithium mining industry has emerged as a cornerstone of the clean energy transition, driven by the skyrocketing demand for lithium-ion batteries.
The surge in lithium demand is driven by the EV market, which accounted for over 70 percent of the global lithium consumption in 2024, according to the India-based research firm.
With countries such as the United States, China, and members of the European Union pushing for net-zero emissions by mid-century, lithium demand is expected to escalate further.
“These batteries power electric vehicles (EVs), renewable energy storage systems, and consumer electronics, making lithium a critical resource for a sustainable future,” the India-based firm further said.
Nigeria can get into an industry still considered mainly on the ground floor. Discoveries of lithium deposits in Plateau, Oyo and Kaduna states allow the country to craft better policies than it did with other minerals like gold.
“Nigeria is sitting on a goldmine or rather a lithium mine,” said Tomiwa Bayo-Ojo, a geologist and mining expert. “With the global demand for lithium skyrocketing, Nigeria has a unique opportunity to leverage its reserves to boost the economy and play a significant role in the global energy transition.”
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For Nigeria to seamlessly tap into the global market, Bayo-Ojo advised state and federal governments to ensure tailor-made policies.
“The federal government level would need to ease the documentation procedures to attract investors. For instance, the Mining Cadastre Office should create a one-stop shop in partnership with other government agencies to make it easier for investors to obtain mining licences and permits for lithium,” Bayo Ojo said.
In 2024, BusinessDay’s findings showed global demand for lithium mining reached an impressive $3.9 billion, highlighting its pivotal role in the energy sector.
Chinese presence
Most of the world’s lithium is produced in four countries: Australia (the world’s largest producer), China, Chile and Argentina.
However, these countries do not produce enough to fulfil the expanding worldwide demand. As a result, the search for lithium has moved to Africa and is already being extensively mined in Zimbabwe (Africa’s largest producer), Namibia, the Democratic Republic of the Congo, Mali, and Ghana.
Today, the quest for lithium is gaining traction in Nigeria, with competition becoming increasingly fierce.
In Nigeria, lithium is currently mined in Nassarawa, Kogi, Kwara, Ekiti, and Cross River States. In 2018, Kian Smith Trade & Co, a Nigerian mining company, announced the discovery of 15,000 tonnes of commercial lithium in Nigeria.
On February 5 2025, a Chinese company, Jiuling Lithium Mining Company, announced plans to invest over $200 million in the establishment of a lithium processing factory in the Endo community, Nasarawa Local Government Area of Nasarawa State.
Xiong Jin, managing director of the company, expressed his commitment to build one of the largest lithium mining companies in Nasarawa State.
While giving specific technical details about the size of the factory, Xiong Jin mentioned that the company would pay graduates employed to work at the mining site a minimum of N500,000.
Uba Saidu Malami, president of the Geological Society of Nigeria, told France24 that the Chinese will sometimes seek to move in before sufficient exploration work has been done.
“There is a need for detailed exploration work to ascertain the reserves of lithium in those areas,” said Malami, stressing the need for better regulation of the sector.
The Chinese “are cowboys when it comes to mining,” he added.
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“They move the excavator and just expand that physical extraction, which is not smart mining in these days of sustainable practice and environmental sensitivity.”
Prospects
As nations invest heavily in electrification and battery technologies, Future Market Insight said the industry is expected to experience robust growth, with revenues projected to reach $4.2 billion in 2025 and an astounding $8.5 billion by 2035.
“This equates to a compound annual growth rate (CAGR) of 7.2% during the assessment period (2025-2035), underscoring the sector’s critical importance to the global economy,” It added.
Conflict
Across the globe, countries that have discovered lithium have become susceptible to violence. In India, the People’s Anti-Fascist Front issued a threat in 2023, stating that it would not tolerate the ‘exploitation’ and ‘theft’ of lithium discovered recently in Jammu and Kashmir.
Nigeria regularly declares war on illegal miners and has made scores of arrests without managing to choke off the flow of mining hopefuls who see lithium as their ticket to riches.
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