Foreign Investors Target Nigeria’s Lithium Reserves Amid Surging Global Demand

 Booming Lithium Market Sparks Mining Frenzy in Nigeria

As global demand for lithium surges due to its crucial role in electric vehicle (EV) batteries and mobile phones, foreign investors, particularly Chinese companies, are increasingly turning their attention to Nigeria’s vast lithium reserves. However, concerns over illegal mining, environmental risks, and local conflicts continue to shadow the industry’s rapid expansion.

Lithium Rush in Nasarawa State

In Gidan Kwano, Nasarawa State, local miners like Abdullahi Ibrahim Danjija spend hours chiseling lithium-rich rocks, hoping to cash in on the resource boom.

• Danjija earns up to N150,000 ($100) daily, nearly double Nigeria’s monthly minimum wage.

• Many artisanal miners migrated from northern states, lured by promises of wealth from the informal lithium mining industry.

• Women and children are also involved in mining, either digging up raw lithium or processing the rocks for sale.

However, much of this mining activity remains unregulated and illegal, with miners often operating without permits or environmental safeguards.

China’s Growing Influence in Nigeria’s Lithium Sector

China, the world’s largest lithium consumer and refiner, is rapidly expanding its foothold in Nigeria. Chinese companies, such as Avatar and Ganfeng, have already established processing plants in the country, where raw lithium ore is converted into lithium oxide for export to China.

• Chinese buyers dominate the market, sourcing lithium directly from local vendors.

• Mining operations often begin before proper exploration and environmental assessments are conducted.

• Illegal Chinese miners have been accused of exploiting local resources without sustainable mining practices.

Uba Saidu Malami, president of the Geological Society of Nigeria, criticized China’s aggressive approach:

“The Chinese move in with excavators before proper exploration is done. This is not sustainable or environmentally friendly mining.”

Nigerian Government’s Push for Lithium Processing and Regulation

Recognizing lithium as “the new oil,” the Nigerian government is working to attract more foreign investment while imposing new regulations to prevent resource exploitation.

• Authorities have arrested illegal miners but struggle to curb unauthorized lithium extraction.

• Nigeria is now demanding foreign investors establish lithium processing plants within the country before obtaining mining rights.

• The government signed a lithium mining agreement with France in 2024, aiming to diversify investment beyond Chinese dominance.

Reports suggest this processing requirement discouraged Tesla CEO Elon Musk from investing in Nigeria’s lithium sector.

Conflicts and Environmental Concerns

While lithium mining presents economic opportunities, it also comes with social and environmental risks.

• Local disputes arise over land ownership and mining rights.

• Armed groups and criminal networks exploit unguarded mining sites to illegally extract lithium.

• Environmental degradation includes deforestation, water pollution, and hazardous mining practices.

• Frequent landslides during the rainy season pose deadly risks to miners.

Future Outlook: Nigeria’s Role in the Global Lithium Market

With lithium demand projected to increase tenfold by 2030, Nigeria stands to benefit significantly if it properly regulates and develops its lithium sector.

However, the success of the industry will depend on:

✅ Stronger enforcement against illegal mining

✅ Sustainable extraction practices

✅ Greater investment in local lithium processing

✅ Ensuring mining benefits local communities

As Nigeria positions itself as a key player in the global lithium supply chain, the balance between economic gains, foreign investment, and environmental responsibility will shape the country’s mining future.