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Nigeria is set to transform its mining industry by launching two lithium processing plants in 2025, leveraging abundant mineral reserves for economic progress.
What does this mean?
This strategic move represents Nigeria's shift from exporting raw materials to adding domestic value, targeting hefty economic benefits. With major backing from Chinese investors like Jiuling Lithium Mining Company and Canmax Technologies providing over 80% of the $800 million needed, the $600 million plant near the Kaduna-Niger border will soon be operational, and the $200 million Abuja refinery is nearing completion. This initiative supports Nigeria's goal to boost mining's GDP share beyond 1% by processing minerals locally and regulating small-scale mining. A 2022 Geological Survey Agency report revealing vast high-grade lithium reserves is driving this change.
The new lithium processing plants are poised to energize Nigeria's economy through job creation and tech advancements, potentially increasing foreign investment appeal. With further facilities planned in Nasarawa by late 2025, Nigeria aims to solidify its stance in the global lithium market, essential for the booming electric vehicle sector.
The bigger picture: Powering up an underutilized resource.
By focusing on domestic processing, Nigeria is curtailing raw mineral exports and unlocking the mining sector's potential. Expected to considerably increase the sector's current GDP contribution, this initiative could fundamentally transform the economy by boosting local employment and industrialization. It also aligns Nigeria with international green energy movements, capitalizing on natural resources for more economic self-sufficiency.