As part of its Economic Diversification strategy, Nigeria is pursuing a new economic opportunity in Lithium mining. Lithium has emerged as an indispensable resource, mostly utilized in batteries for electric vehicles (EVs) and Renewable Energy sources, as global attention shifts more and more toward these forms of technology. As a nation with a developing Economy and a wide range of Mineral resources, Nigeria may gain a lot by exploring its lithium potential. Lithium-bearing minerals have been found in multiple pegmatite sites through exploration efforts in the country.
States like Ekiti, Cross River, Nasarawa, Oyo, Kogi, Ogun, and Kwara have been discovered to possess lithium deposits. These discoveries are encouraging for Nigeria’s standing within the global supply chain, especially given the rising demand for the mineral in batteries for electric cars and renewable energy storage. Greener technologies are becoming more prevalent worldwide as a result of the continuous encouragement of action against climate change. Lithium-rich nations are benefiting greatly in terms of both Economic Expansion and technical innovation.
Exploration efforts of the mineral have increased.
With recent discoveries, Nigeria has also evolved into one of these nations that will probably become more significant players in the development of Technology and energy in the future. Harnessing the Nigerian market’s resources could increase demand for locally produced electric vehicles (EVs) as local battery production would make them more affordable. The persisting high cost of petroleum-based products combined with the Climate Change movement may lead to an increase in production/conversion toward EVs, which are primarily battery-powered. With this, the nation could achieve self-sufficiency and also grow to be a significant exporter of products derived from lithium.
The Nigerian government is promoting the growth of the mineral in the nation through a number of measures, having acknowledged the strategic relevance of the mineral in the global clean energy transition. The country has increased its exploration efforts in states that have been discovered to possess the mineral. Through partnerships, incentives, and advantageous regulations, the government is attempting to draw in foreign companies in order to increase Mining activity. Elon Musk, the CEO of Tesla, is among the foreign Investors who have expressed interest in Nigeria’s lithium deposits, which has fueled an upsurge of the industry’s potential.
Recent developments indicate potential in the industry.
Currently, Chinese companies dominate the majority of the market and are set to revolutionize Nigeria’s lithium mining and processing sector. In Nasarawa State, Nigeria’s largest lithium processing factory was officially inaugurated earlier this year, under the operation of Avatar New Energy Materials, a Chinese company. The $100 million plant can process 4,000 tonnes of material a day. Another development was the announcement of a US$200 million Investment for another lithium factory in Nasarawa by Canmax Technologies, a well-known Chinese business that produces around one-third of the world’s battery materials.
Chinese company Ming Xin Mineral Separation is also building a lithium-processing factory in neighboring Kaduna State to produce V batteries. The nation has, however, strengthened its laws governing the commodity’s mining. According to government regulations, companies who do not build processing plants within Nigeria will not be permitted to mine and Export the mineral. While there are bottlenecks that need to be overcome such as Infrastructure development and regulatory enforcement, recent developments indicate that the country has the potential to emerge as a major participant in the global market.
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According to a report by Straits research, the lithium market is expected to expand at a Compound Annual Growth Rate (CAGR) of 22.1% and reach $230.4 billion by 2031. Meanwhile, the demand for the mineral is expected to more than triple globally by 2030, from 720,000 metric tons in 2022 to an estimated 3.1 million metric tons. China dominates the majority of the lithium battery production and processing chain, whereas Australia leads in the mineral production from hard rock and Chile, Argentina, and Bolivia lead in reserves and production. Nevertheless, the increasing global demand for the mineral observed presents a rising opportunity for Nigeria.