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Nigeria to launch two Chinese-backed lithium processing plants this year

27 may 2025

Nigeria will commission two major lithium processing plants this year, Mining Minister Dele Alake has announced, signalling a strategic shift from raw mineral exports to domestic value addition.

Reuters reports that the facilities, primarily financed by Chinese investors, aim to leverage Nigeria’s vast mineral resources to boost local jobs, technology transfer, and manufacturing.

A 600−million lithium processing plant near the Kaduna−Niger border is set for commissioning this quarter, while a 200-million refinery on the outskirts of Abuja is nearing completion.

Two more plants in Nasarawa state are expected before the third quarter 2025.

"We are now focused on turning our mineral wealth into domestic economic value—jobs, technology, and manufacturing," Alake said.

Chinese firms, including Jiuling Lithium Mining Company and Canmax Technologies, have provided over 80% of the funding.

Local investor, Three Crown Mines holds the remaining stake.

The move follows Nigeria’s 2022 discovery of high-grade lithium deposits across multiple states, spurring global investor interest.

It also aligns with broader mining reforms, including restrictions on unprocessed mineral exports, formalisation of artisanal mining, and the creation of a state mining firm allowing up to 75% private ownership.

Mathew Nyaungwa, Editor-In-Chief, Rough & Polished