China secures lithium foothold in Nigeria amid beneficiation push

Two Chinese-backed lithium processing plants are set to start production in Nigeria later this year, as the West African country moves to enforce a policy requiring miners to refine minerals locally rather than export them in raw form. The push comes amid growing global demand for lithium, a key raw material for electric vehicle (EV) batteries. At the same time, China is reportedly exploring further moves up the EV value chain, including the potential establishment of EV manufacturing facilities in Nigeria.

One of the processing plants is a US$600m project by Jiuling Lithium Mining Company, located on the boundary of Kaduna and Niger States in northern Nigeria. Production is slated to begin this year. The second, a US$200m facility by Canmax Technologies in Nasarawa State, near the capital Abuja, is scheduled to come online in the third quarter. 

Nasarawa State Primary Healthcare signboard. Photo courtesy: Amit Jain

These projects add to a small but growing list of early movers in Nigeria’s nascent lithium industry. Chinese firm Avatar New Energy Materials last year launched Nigeria’s first lithium processing plant – also in Nasarawa State – with a capacity of 1m tonnes per annum. Avatar has indicated plans to construct a second facility in the state.

UK-based Jupiter Lithium is already mining in Kaduna State and has partnered with US-headquartered ReElement Technologies to process lithium-bearing rock into a more concentrated form used in battery production. The plant began operations in the first quarter and is expected to produce 55,000 tonnes of lithium concentrate this year, with a target of 167,000 tonnes within two years.

Canadian-listed Thor Explorations, primarily a gold miner, has also started lithium exploration in Nigeria’s southwest.

The lithium industry in Nigeria remains at an early stage, but initial discoveries point to strong potential. The Nigerian Geophysical Survey Agency has mapped a lithium belt stretching from the country’s northwest through its centre and towards the southeastern border with Cameroon. Nigerian lithium is notable for its high grade: some deposits contain as much as 13% lithium oxide, far exceeding the 0.4% content typically considered commercially viable. Some lithium deposits in Nigeria are also outcropping, meaning they are exposed at the surface, requiring less exploration and excavation. This reduces mining costs, simplifies operations, and allows faster project timelines.

Much of Nigeria’s lithium mining remains artisanal, as many are eager to tap into soaring global demand. These small-scale miners typically sell to Chinese buyers who purchase directly from their warehouses. However, the government has introduced reforms to formalise the sector, aiming to organise artisanal miners into regulated cooperatives.

Last year, President Bola Tinubu directed the Ministry of Solid Minerals Development to issue mining licences only to companies that establish processing facilities within Nigeria. The move is part of a broader push to ensure minerals are refined locally before export.

Tesla sought access to Nigeria’s high-grade lithium in 2022 but talks with the government reportedly collapsed after officials demanded the company establish a battery manufacturing facility in the country – something the US carmaker was unwilling to do. Meanwhile, China’s ambassador to Nigeria, Yu Dunhai, recently indicated that Beijing is exploring the possibility of establishing an electric vehicle plant in the country.

Chinese mining and refining companies are at the forefront of Africa’s expanding lithium industry, aiming to lock in long-term access to the metal. The continent accounted for nearly 11% of global supply in 2024, up from almost nothing at the start of the decade, with that figure projected to rise to over 14% by 2028. Zimbabwe is currently the largest contributor, with Chinese firms investing billions of dollars in local mines and processing plants. Projects backed by Chinese interests are also being developed in Mali and Namibia.

 

References

‘Thor Explorations announces formation of Nigeria‑focused lithium subsidiary with acquisition of over 600 km² of prospective lithium pegmatite exploration tenure’, Thor Explorations, 31 May 2023

‘Commissioning of the 4,000 tonnes per day Avatar New Energy Materials Co. Ltd lithium processing plant in Nasarawa Local Government Area’, Nasarawa State Government, 10 May 2024

‘Avatar to build second lithium factory in Udege’, Nasarawa State Government, 12 June 2024

‘China drives African lithium surge to lock in key battery metal’, Bloomberg, 12 August 2024

‘Africa Down Under 2024 | Interviews | Jupiter Lithium’, Paydirt TV, 05 September 2024

‘Governor Abdullahi Sule takes on Elon Musk: Only unserious lithium investors avoid value addition’, The Africa Report, 02 October 2024

‘Nigeria’s lithium mining Eldorado sparks concerns’, France 24, 06 February 2025

‘Chinese lithium firms take over copycat Nigeria refinery project’, Bloomberg, 12 February 2025

‘China set to establish an electric vehicle (EV) plant in Nigeria’, Business Insider Africa, 19 May 2025

‘Nigeria to open two Chinese‑backed lithium processing plants this year’, Reuters, 26 May 2025

‘Chinese companies grab stake in Nigeria’s lithium and EV future’, African Business, 03 July 2025

‘Nigeria’s push to cash in on lithium rush gets off to a rocky start’, Climate Home News, 08 July 2025