In May 2024, President Bola Tinubu commended the inauguration of Nigeria’s largest lithium processing plant in Nasarawa State, hailing it as a clear sign of the country’s attractiveness for foreign investment.
The president made the remarks in Abuja during a meeting with Governor Abdullahi Sule of Nasarawa State, who was accompanied by Mr. Hi Yongwei, Chairman of Avatar New Energy Materials Company Limited, and Mr. Zhenhua Pei, Chairman, Canmax Technologies.
Nigeria possesses an immense reserve of lithium, a vital element required for the manufacturing of electric vehicles (EVs). Nigeria possesses estimated reserves of 250,000 metric tonnes of lithium, which might make it a major player in the worldwide EV industry.
With a projected 20% compound annual growth rate (CAGR) from 2020 to 2025, the worldwide EV industry is expanding quickly. One essential part of EV batteries is lithium, which is in great demand. By growing its lithium business and providing the material to EV makers, Nigeria may profit from this trend.
Nigeria must overcome obstacles to grow its lithium business, such as a lack of finance, infrastructure, and regulatory support. To tackle these obstacles, the government must provide backing and allocate funds for infrastructure, incentives for both domestic and foreign investors, and research and development. Nigeria still has the chance to grow its supply chain and lithium sector despite these obstacles.
A Chinese firm called Avatar built the lithium processing plant which produces about 4,000 metric tonnes daily while Canmax Technologies, a renowned Chinese firm responsible for over 30% of global battery material production, announced a new investment of $200 million for another lithium processing plant in Nasarawa State.
To encourage the growth of the solid minerals industry, which includes lithium, the government has launched laws and initiatives. Growth can also be accelerated via partnerships with foreign businesses and investments from the private sector. Nigeria can boost local economies, provide jobs, and aid in the worldwide shift to sustainable energy by growing its lithium sector. Nigeria has the potential to become a major participant in the EV market and harness its lithium riches with the correct assistance and funding.
