ABUJA, November 9, 2026 — Nigeria plans to establish three lithium processing factories in Nasarawa, Kaduna, and Abuja to cut battery imports and retain value from its raw mineral resources. The move aims to position Nigeria in the global critical minerals and battery manufacturing value chain, with Vice-President Kashim Shettima warning that exporting strategic minerals in raw form forces Nigeria to import finished products at significantly higher prices.
Background And History
The global lithium market is concentrated in Australia, Chile, and China, leaving Africa with little control over pricing or supply chains. Lithium processing converts raw ore into high-purity compounds, such as lithium hydroxide or carbonate, essential for electric vehicle (EV) batteries, adding 30-50% value to the mineral before export. Global lithium demand is projected to grow 20% annually through 2030, with Africa’s share remaining minimal despite rich deposits.
The Numbers Behind The Move
India’s $300M capex scheme for lithium and nickel processing offers a model, with 30% subsidies for plants with a minimum capacity of 30,000 metric tons of lithium, reducing import dependency for EV batteries. Nigeria’s factories target 30,000+ metric tons of refined lithium, with the cost of dependency being significant, as the country currently exports raw lithium and imports refined batteries at higher prices.
Geopolitical Shift And State-Backed Processing
China-linked illegal lithium processing plants were recently uncovered in Nigeria’s Ogun State, highlighting foreign exploitation and regulatory gaps. The discovery of these plants, along with an illegal oil refinery, exposes vulnerabilities in Nigeria’s supply chain.
What Comes Next
The success of Nigeria’s factories depends on overcoming corruption and energy shortages, as lithium processing requires significant water and energy inputs. The EFCC’s inspection of the illegal refinery and lithium processing plants suggests a regional pattern of foreign exploitation of Africa’s critical minerals. Nigeria’s factories aim to position the country in the global critical minerals and battery manufacturing value chain, but challenges lie ahead, including the need for skilled labor and infrastructure. As Vice-President Kashim Shettima stated, “trade is no longer driven exclusively by conventional economic considerations but is increasingly shaped by geopolitical competition, national security interests and the pursuit of technological supremacy.”
Sources
- FG to establish three lithium processing factories to cut battery imports – Businessday NG
- Lithium
- Another Chinese-run illegal oil refinery and lithium processing plants uncovered in West African country, months after illegal gold mining bust in the region
- India backs domestic lithium and nickel processing capacity – Energy Storage
- OSHA Launches Webpage on Safe Handling of Lithium-Ion Batteries at Work — Occupational Health & Safety
- India approves $300 million scheme for processing critical minerals
Photo: Calistemon (CC BY-SA 4.0)
