Nigeria Holds Promising Opportunity to Tap $37 Billion Lithium Deposits

With the surging demand for lithium due to its critical role in batteries for high-end smartphones and electric vehicles, Nigeria's abundant lithium reserves present a significant chance for economic growth. The demand for lithium has led to a 10.81% increase in its value during the first half of the year, making it one of the top-performing commodities. Nigeria's lithium deposits, particularly in Plateau and Kaduna states, provide the country with the potential to develop strategic policies for this valuable resource.

Nigeria's entry into the lithium industry is still in its early stages. Notably, Kian Smith Trade & Co., a Nigerian mining company, previously uncovered substantial lithium ore deposits of around 15,000 tonnes. Moreover, a Chinese firm, Landmark Lithium Mining Company, is investing in a lithium factory in Nasarawa State to produce about 3000 tonnes daily at an estimated cost of $100 million.

The Nigerian government has recognized the strategic significance of lithium and has granted licenses for both small-scale and large-scale operations. Foreign companies, in accordance with Nigerian law, must collaborate with local companies to mine or purchase lithium and other minerals.

Global lithium demand is driven by the growing need for batteries, particularly in electric vehicles. The lightweight metal's importance is reflected in its status as the top-performing commodity in recent years. The International Energy Agency predicts a 35% increase in global electric vehicle sales share, further boosting the demand for lithium.

Though the largest lithium suppliers currently are Australia, Chile, and China, Nigeria's emergence into the lithium market presents a fresh opportunity. However, to fully realize this potential, the country must strategically develop its mining policies and encourage investments in the lithium mining industry.