Nigeria is set to commission two major lithium processing plants this year, the country's mining minister announced on Sunday, marking a shift from raw mineral exports towards adding value domestically.

The facilities, largely funded by Chinese investors, could help transform Nigeria's vast mineral wealth into jobs, technology, and manufacturing growth within the country. 

Mining Minister Dele Alake said a $600 million lithium processing plant near the Kaduna-Niger border is slated for commissioning this quarter, while a $200 million lithium refinery on the outskirts of Abuja is nearing completion.    

Two additional processing plants are expected in Nasarawa state, which borders the capital Abuja, before the third quarter of 2025, the minister said.   

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The court in the city of Jos has also ordered the deportation of the Chinese nationals and be banned from entering the country in the future.

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

Broader mining reforms

Over 80% of the funding for the four facilities has been provided by Chinese firms, including Jiuling Lithium Mining Company and Canmax Technologies, according to separate announcements by governors of the states where the plants are located.

The remaining stakes are owned by local investor Three Crown Mines.

The push for domestic processing follows a 2022 study by Nigeria's Geological Survey Agency, which discovered significant deposits of high-grade lithium across half a dozen Nigerian states, attracting considerable international interest.   

These developments are part of Nigeria's broader reforms to its underdeveloped mining sector, which currently contributes less than 1% to the nation's gross domestic product.    

Other reforms undertaken include restricting the export of unprocessed minerals, formalising artisanal mining operations, which account for much of the current extraction, and establishing a state mining firm where investors can own up to a 75% stake.