Nigeria’s mining sector is undergoing a significant transformation, with Kebbi State set to become a major lithium processing hub. El-Tahdam Exploration Limited, a fast-emerging Nigerian mining firm, has secured a $500 million investment deal with TSG Mining Group, a partnership that is set to revolutionise lithium production in the country.
El-Tahdam, which specialises in unlocking Nigeria’s reserves of critical minerals for electric vehicles (EVs), including lithium, manganese, iron ore, and graphite, has been actively investing in exploration and mining rights. Over the past three years, the company has spent approximately $5 million researching and experimenting with lithium ore from Libata, Kebbi. Its efforts led to an impressive 92% recovery rate—one of the highest in the world—prompting the company to order a full set of processing equipment specifically designed for its mining site in the state.
The new lithium processing facility, which will be the first of its kind in Nigeria, is expected to utilise 2,250 metric tonnes of 6% concentrate as input and produce 80,000 metric tonnes of high-purity 99.9% lithium carbonate annually. This output will account for nearly 5% of the global lithium market. By refining higher-grade lithium domestically instead of exporting raw ore, Nigeria stands to increase its revenue while reducing the economic losses caused by the export of unprocessed minerals.
The investment from TSG Mining Group is a significant endorsement of Nigeria’s lithium potential. The deal includes a $250 million allocation to establish the state-of-the-art processing plant in Kebbi, which is expected to be operational by the end of 2025. El-Tahdam has already secured a 25-year renewable mining licence to support the venture. TSG Mining Group’s investors include Zhejiang State-Owned Capital and Sunwoda, a company valued at $6 billion and renowned for its expertise in the new energy sector.
The growth of Nigeria’s lithium industry is unfolding against the backdrop of sweeping reforms in the mining sector, led by Minister of Solid Minerals Development Dr Henry Dele Alake. His leadership has been credited with reinvigorating the industry by curbing illegal mining and ensuring greater regulatory compliance. The introduction of Mining Marshals has played a key role in this effort, strengthening investor confidence and creating a secure environment for legitimate mining companies like El-Tahdam.
This strategic push aligns with the government’s broader agenda to diversify Nigeria’s economy beyond oil dependence. By fostering foreign direct investment and promoting value addition in the mining sector, Nigeria aims to become a key player in the global lithium supply chain. The country is now positioning itself as an attractive destination for battery manufacturers such as CATL and Sunwoda, as well as electric vehicle producers like Tesla and BYD. Additionally, the initiative is expected to support local EV manufacturers such as Innoson Motors, further driving Nigeria’s industrialisation efforts.
With the backing of this substantial investment, Kebbi is set to emerge as one of Africa’s largest lithium processing hubs. The collaboration between El-Tahdam and TSG Mining Group signals a new era for Nigeria’s mining sector, one that prioritises sustainability, industrial growth, and long-term economic benefits.
