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Nigerian Government Initiates The Construction Of A $250 Million Lithium Factory.
The federal government has shown its commitment to the lithium industry by initiating the construction of a $250 million lithium factory by the Chinese company Ganfeng Lithium Mining Company in Nasarawa LGA. As a testament to this growing interest, three companies are actively working to prospect over 25,000 tonnes of lithium per day. It will be done in two local government areas: Nasarawa and Karu.
Companies use lithium, a highly sought-after and vital metal, in energy-dense rechargeable batteries for cell phones, electric vehicles, and grid storage. Lithium has recently taken center stage in this mineral rush. Investors from around the world have poured hundreds of millions of hard currency into lithium exploration. This is largely due to the increasing global shift toward renewable energy and the urgency to phase out fossil fuel vehicles in favor of emission-free electric cars.
The Current State Of The $250 Million Lithium Factory In Nigeria.
The construction of the $250 million lithium factory is not just about economic potential but also addresses concerns related to security and environmental degradation. In Nigeria, the quest for lithium has gained traction, with companies mining the mineral in several states, including the $250 million lithium factory in Nasarawa. Others include Kogi, Kwara, Ekiti, and Cross River. Notably, Kian Smith Trade & Co, a Nigerian mining company, made a significant discovery of 15,000 tonnes of commercial lithium in Nigeria in 2018.
Charles Asiegbu, a senior policy and research analyst at Nextier Group, notes that the price of lithium per tonne has surged from £4,600 in 2020 to over £61,000 in 2022, marking a remarkable tenfold increase. Governor Abdullahi Sule corroborates this surge and highlights a World Bank report predicting a fivefold increase in demand for essential metals like lithium and cobalt by 2050. Furthermore, experts project that the global electric vehicle market will reach £646.23 billion by 2030.
Historically, the world’s lithium production was concentrated in Australia, Chile, Argentina, and China. However, these countries have been unable to meet the surging global demand, leading to an intensified search for lithium in Africa. Zimbabwe, in particular, stands as Africa’s largest producer, with significant mining activities also taking place in Namibia, the Democratic Republic of the Congo, Mali, and Ghana. |
