Blessed with limitless natural resources, new discoveries of high grade resources are found in Nigeria consistently. Recently, lithium was discovered across different regions in the country such as Kogi, Nasarawa, Kwara, Plateau, Oyo, Ekiti and Cross River. With the resources expected to triple in demand by 2040, the price for a ton of lithium skyrocketed from $6,000 in 2020 to $78,000 in 2022. Despite the industrial development that this recent discovery might offer Nigeria’s economic revenue and improve the foreign exchange, numerous critics have been critical of the guarantees put in place to ensure a prevention of environmental pollution like that crude oil extraction and its pollution of the Niger Delta region of the country.
This development heralded a bidding war between powerhouses including Tesla and China. In August, Nigeria’s Minister of Mines and Steel Development, Olamilekan Adegbite, revealed Tesla’s interest to mine lithium in Nigeria which was rejected, giving the company an ultimatum to situate one of its battery making factories in Nigeria. This ultimatum, the minister said, was aimed at retaining value along the processing chain of lithium worldwide.
Tesla’s proposal rejected as it does not align Nigeria’s new mining policy.
Ming Xin Mineral Separation Nig Ltd., China (MXMS) has however been chosen by Kaduna to build Nigeria’s first lithium processing plant to enable the manufacturing of batteries for electric vehicles (EVs). The Kaduna Investment Promotion Agency, on January 13, took to social media to post pictures of its leadership reviewing the construction plan of the plant. The Kaduna State Mining Company indicated that the plant was being built on a 9.3 hectares of land and the executive secretary of the Kaduna state investment promotion agency, Khalil Nur Khalil also disclosed that the plant was going to be a game changer that would lay the foundation for Nigeria’s ambition for manufacturing EVs in Kaduna.
On the rejected proposal of Tesla, Ayodele Adeyemi, a special assistant to the minister of mines and steel development, disclosed that the company’s proposal did not align with Nigeria’s new mining policies. He indicated that the new mining policy demanded an addition to the value of raw material before exports, for the creation of jobs and development of industries. Adeyemi noted that they weren’t demanded to turn ores into finished products but to add value to it before exportation.
China’s loan represents 3.94 percent of Nigeria’s total debt.
Earlier in January, Elon Musk, the CEO of Tesla, indicated that he saw Tesla’s biggest competition emerging from China and in that same month, Tesla was forced to slash its car prices in China for the second time since September 2022. According to the International Energy Agency, China is already controlling about 60 percent of the global lithium processing and with this development with Nigeria, the country is exploring more frontiers to expand their control of the resource.
The Nigerian government has been significantly dependent on funding from China for numerous projects such as the Abuja Light Rail Project, terminal expansions at four major airports, as well as the National Public Security Communication System project. In fact, Nigeria’s Debt Management Office disclosed that China’s loans represented 3.94 percent of the country’s total debt. However, in spite of the efforts of the Chinese in financing and constructing the infrastructure, the United States is still recognized as one of Nigeria’s major sources for import capital. The National Bureau of Statistics’ show that in 2021, $2.2 billion was granted by the United Kingdom, $677 million and $10 Million in USA and China respectively.
Nigeria must exploit chance by leveraging domestic value-added process.
According to IEA, about 2 million electric vehicles and hybrids must be produced to achieve a net zero emission by 2050. With this, lithium would continually be valued and in demand, given that it has no alternative for producing EVs batteries and batteries for phones, literature, digital cameras, as well as the manufacturing of trains and planes. Oghosa Erhanon, a lawyer and energy transition analyst, noted that Nigeria must exploit this opportunity by leveraging its domestic value-added process to the natural resource.
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China beats Tesla to Nigeria’s lithium. – China continues to explore more frontiers to expand control of lithium. – Express your point of view.
It is good we are having bilateral relationship with China regarding lithium. We should do more of businesses together.
Nigeria, which is endowed with an endless supply of natural resources, is regularly the site of the discovery of resources of a particularly high quality.
Despite the fact that this fresh finding might enhance Nigeria’s economic earnings and the country’s exchange rate, industrial growth is still a priority for the country.
This ultimatum was issued with the intention of preserving value all throughout the chain of production for lithium around the world.
After Tesla’s request to start mining lithium in Nigeria was denied, the country issued an ultimatum demanding the business establish one of its battery production facilities there.
This turn of events signaled the beginning of a competitive bidding process between powerhouses such as Tesla and China.
The factory was meant to be a game-changer that would establish the groundwork for Nigeria’s ambitions to manufacture EVs in Kaduna. This was the plan.
The nation is venturing further into uncharted territory in an effort to increase their command over the resource.
Nigeria government should do what it take so as to harness the potential in the exploration of lithium in the country because if it is done properly millions of the citizen will benefit from it in different ways.
China beats Tesla to Nigeria’s lithium. It will enhance the relationship between China and Nigeria.
Since millions of Nigerians stand to gain from responsible lithium exploration, the country’s leadership should do everything it takes to take advantage of the opportunity.
The goal of this deadline is to maintain high standards across the whole global lithium manufacturing industry.
The government of Nigeria should take all necessary steps to maximize the potential of lithium exploration in the country, as millions of people could stand to gain from doing so.
Nigeria should do everything it takes to maximize the potential of lithium exploration in the country. It has a lot of beneficial gain to the country.
The relationship china lithium) is aimed at retaining value along the processing chain of lithium worldwide. Why rejection? The relationship with China is welcome and encouraged.
Supplying of resources to China will improve and maintain good relationship between the two country which we will benefit from it we have to make use of our resources
Nigeria is highly blessed with many mineral resources one of which is lithium that is now an hot cake in the world today. We should fall for any company just like the case of Niger-Delta. We should maximize this opportunity of the abundance of lithium in Nigeria and give room to only companies that are willing to invest in Nigeria growth and development. Thanks to the government accepting the Chinese proposal because of their willingness to build their battery production company in Kaduna Nigeria.
With the discovery of lithium on our land it is very important that the Nigeria government take the right decision by preventing the repetition of what happened in Niger-Delta. The company that is willing to build their lithium battery production factory here in Nigeria is China that is why they beat Tesla to Nigeria’s lithium.
Notwithstanding the possibility that this recent discovery may boost Nigeria’s economic output and its currency, the nation still places a high focus on industrial development.
The government of Nigeria should take all necessary measures to benefit from the opportunity since responsible lithium exploration stands to benefit millions of Nigerians.