September 19, 2025
Business

Nigeria Set to Commission Chinese-Funded Lithium Processing Plant in Nasarawa to Boost Battery Production

Nigeria is on the verge of a major industrial breakthrough as preparations are in top gear to commission a new lithium processing plant in Nasarawa State, financed by Chinese investors. The facility, which is expected to play a pivotal role in the country’s energy and manufacturing future, will focus on the production of lithium-ion batteries and related materials used in electric vehicles, mobile devices, and renewable energy storage systems.

Located in the heart of Nigeria’s lithium belt, the Nasarawa plant is strategically positioned to tap into the growing global demand for lithium—a critical mineral now regarded as the backbone of the clean energy revolution. With this development, Nigeria is poised to move beyond the mere export of raw minerals and into value-added processing, a step many believe will redefine the country’s place in the global energy supply chain.

The Chinese-financed project is part of a broader wave of foreign direct investments flowing into Nigeria’s solid minerals sector, following renewed government interest in developing the country’s untapped natural resources. The plant is expected to not only stimulate local employment and industrial activity but also help Nigeria diversify its economy away from crude oil dependency.

Industry insiders say the facility will serve as a fully integrated production center—handling the processing of raw lithium ore sourced locally and converting it into battery-grade materials. Once operational, it is projected to significantly reduce Nigeria’s reliance on imported battery components while also positioning the country as a competitive supplier on the international stage.

Government officials have welcomed the project as a key milestone in the implementation of Nigeria’s solid mineral development strategy. The Minister of Solid Minerals Development has noted that the plant aligns with the federal government’s vision to harness mineral wealth responsibly and strategically, especially as global markets shift towards green energy and e-mobility solutions.

With global lithium demand projected to triple over the next decade due to the surge in electric vehicles and renewable energy systems, Nigeria’s entry into the lithium processing space is being seen as both timely and strategic. The Nasarawa facility is expected to become a model for future investments in mineral processing and industrialization across the country.

Stakeholders, including environmental experts and local community leaders, have also called for transparency, sustainability, and inclusive benefits as the project takes off. As Nigeria positions itself for a future driven by clean energy, the successful rollout of this lithium plant could become a blueprint for industrial growth, international cooperation, and economic diversification.