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The Federal Government has inaugurated a lithium processing plant in Nasarawa State with a daily processing capacity of 6,000 metric tonnes, which is the largest in Nigeria to date.
The facility, owned by Diamond New Energy Company Ltd. and located in Endo Community, Nasarawa Local Government Area, has an annual processing capacity of three million metric tonnes.
President Bola Tinubu inaugurated the project on Thursday through Vice President Kashim Shettima, saying the facility reflects the government’s commitment to industrialisation, economic diversification and the development of a value-added minerals industry.
Lithium is a critical mineral used primarily in the production of rechargeable batteries that power electric vehicles, mobile phones, laptops and energy storage systems.
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It is also used in renewable energy technologies, making it one of the world’s most sought-after minerals as countries transition towards cleaner energy.
What they are saying
Tinubu described the commissioning of the processing plant as a major step towards transforming Nigeria’s abundant mineral resources into industrial and economic value.
- “What changes a nation is a deliberate movement from extraction to processing, from potential to production, from raw materials to value-added goods, and from isolated investments to integrated industrial ecosystems.”
Speaking during the inauguration, Governor Sule thanked the Federal Government, investors and other stakeholders for supporting the establishment of the facility.
He said Nasarawa remained open to more investments, assuring prospective investors of a business-friendly environment backed by abundant deposits of lithium, lead, zinc, copper, gemstones, gold, marble and iron ore.
Minister of Solid Minerals Development, Dele Alake, said the inauguration demonstrates that the Federal Government’s reforms in the mining sector are yielding results.
- “Local value addition became a pillar of our policies in the Ministry of Solid Minerals, and I am pleased that operators in the sector have embraced and implemented it.”
Alake said the government’s policy of discouraging raw mineral exports in favour of domestic processing is designed to create jobs, attract investments and develop skilled manpower.
More insights
Nigeria is regarded as one of Africa’s emerging lithium producers, with commercially viable deposits spread across what geologists describe as the Nigerian Lithium Belt, a mineral-rich zone stretching roughly 450 miles across the country.
- Major lithium deposits have been identified in Kogi, Nasarawa, Kwara, Ekiti, Cross River, Oyo, Plateau and Kaduna states, while additional prospects have been discovered in Bauchi, Niger, Edo, Taraba and the Federal Capital Territory.
- These areas contain high-grade lithium-bearing minerals such as spodumene and lepidolite, which are highly valued for manufacturing electric vehicle batteries, consumer electronics and renewable energy storage systems.
The government’s focus on developing domestic processing follows the discovery of a new polymetallic mineral province in Kaduna State. Announcing the discovery in late June, Alake said the province contains platinum group metals, gold, nickel, copper, lithium and rare earth elements, further strengthening Nigeria’s critical minerals potential.
The minister also disclosed that the Federal Government’s mining reforms are expected to unlock about $2.6 billion in mineral processing investments. These include an $800 million lithium processing investment, a $600 million lithium processing facility in Nasarawa State, a $200 million lithium processing plant near Abuja awaiting commissioning, and a $1 billion iron ore-to-steel project in Kogi State.
The reforms are aimed at shifting Nigeria away from exporting raw minerals towards processing them locally, allowing the country to capture more value across the mining supply chain while creating employment and supporting industrial growth.
What you should know
Global demand for lithium is expected to rise sharply over the next two decades as countries accelerate the transition to clean energy technologies.
- According to a recent report by the United Nations Conference on Trade and Development (UNCTAD), worldwide lithium demand is projected to increase by 353% between 2024 and 2040, while demand for graphite is forecast to grow by 131% over the same period.
The report attributes the surge to the rapid adoption of electric vehicles, battery storage systems and renewable energy infrastructure, all of which depend heavily on critical minerals.
- UNCTAD projects that clean energy technologies will account for an increasingly larger share of global mineral consumption, with the proportion of lithium demand linked to clean technologies expected to increase from 62% in 2024 to 87% by 2040.
The growing demand is expected to increase competition among mineral-producing countries, placing greater importance on nations such as Nigeria that are seeking to expand domestic processing and move higher up the global critical minerals value chain.
