Nasarawa state secures $2 million lithium deal with Chinese firm

Nasarawa State has signed a $2 million supplementary lithium agreement with Chinese-backed Diamond New Energy, in a move aimed at strengthening the state’s lithium processing value chain and securing continued feedstock supply for a major refining facility.

The agreement was signed on Friday at the Nasarawa State Governor’s Lodge in Abuja, where Governor Abdullahi Sule presided over the ceremony following his recent investment visit to China.

The governor said the supplementary agreement was designed to protect the interests of both the state and the company by ensuring the continued operation of the refinery and preserving jobs linked to the project.

The development comes weeks after Nairametrics reported that the Federal Government inaugurated a lithium processing plant in Nasarawa State with a daily processing capacity of 6,000 metric tonnes, the largest in Nigeria to date.

What they are saying

Governor Sule said the agreement would guarantee the continued supply of lithium raw materials to keep the refinery operational while also protecting the state’s interests as a mining licence holder.

According to him, the arrangement would support industrial activity, safeguard employment, and ensure that the state benefits from the company’s operations.

• “By keeping your factory operational, we ensure that you continue to get raw material. That is the essence of this agreement, and that is the essence of us quickly obtaining that license before somebody else will get it. Now we have achieved both aims.
• “We are going to keep your factory functional, and we also have an interest as license owners in whatever you are doing in your company. More importantly, the people you have employed will remain employed,” the governor said.

The Managing Director of the Nasarawa State Investment Development Agency (NASIDA), Ibrahim Abdullahi, said the supplementary agreement builds on the mining cooperation partnership signed in 2024, which he said contributed to the development of the largest lithium processing refinery in West Africa.

He added that the new agreement would allow the continued supply of lithium materials from the state government’s mining block to serve as feedstock for the refinery, while generating immediate financial benefits for the state through the $2 million payment and future revenue streams.

A representative of Diamond New Energy, David Siong, said the company remains committed to expanding local processing and employment in Nasarawa State.

• “Diamond New Energy always insists on and firmly believes in the further development of resources in Nasarawa, the deep processing of resources, creating employment for the local community, and boosting local economic development. We look forward to the support of the state government to put this cooperation into practice,” Siong said.

Get up to speed

The agreement adds to the growing wave of lithium investments in Nasarawa State, which has become one of Nigeria’s emerging mineral processing hubs.

• On July 3, Nairametrics reported that the Federal Government inaugurated a lithium processing plant in Nasarawa with a daily processing capacity of 6,000 metric tonnes, making it the largest lithium processing facility currently operating in Nigeria.
• Nigeria is increasingly viewed as one of Africa’s emerging lithium producers, with commercially viable deposits concentrated across the Nigerian Lithium Belt, a mineral-rich corridor stretching across several states.

The Federal Government has also said ongoing mining reforms are expected to unlock about $2.6 billion in mineral processing investments, including 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.

What you should know

Nasarawa’s latest agreement comes amid broader efforts across Nigeria to deepen local lithium processing rather than exporting raw minerals.

• Recently, Zamfara State unveiled a $200 million lithium mining and processing project involving multiple local and foreign partners as part of its strategy to attract mining investment and expand value-added mineral processing.
• Commercial lithium deposits have been identified across several states, including Nasarawa, Kogi, Kwara, Ekiti, Cross River, Oyo, Plateau and Kaduna, with additional prospects reported in other parts of the country.

These deposits contain high-grade lithium-bearing minerals such as spodumene and lepidolite, which are essential raw materials for electric vehicle batteries, consumer electronics, and renewable energy storage systems, making Nigeria’s lithium sector increasingly attractive to international investors.