Nigeria is rapidly emerging as a focal point in the global scramble for resources essential for batteries, electric vehicles, and the clean energy transition. Lithium and other critical minerals in Nigeria is drawing high-profile deals and thrusting the nation into the international spotlight.

An Australian company, Chariot Corporation, recently made a $2.3 million acquisition deal for four Nigerian lithium mining sites.

As global demand surges, harnessing its mineral wealth for sustainable national development becomes more critical for the nation. The risk of another chapter in the story of resource-driven foreign dominance is high at the moment.

Lithium in Nigeria and the Global Context

Nigeria’s “lithium belt,” stretching from the northwest through the central and southeastern regions, has revealed deposits with lithium oxide concentrations.

At a 13% reserve level, it far surpasses the global commercial threshold, positioning it alongside established players like Australia and Chile.

• Global Demand: Lithium is a cornerstone of the electric vehicle and renewable energy revolution.
• Current Leaders: Australia, Chile, and China dominate global production, but Nigeria’s reserves are drawing increasing attention from major international investors.

Policy Shifts — From Raw Export to Local Value Addition

Historically, Nigeria’s mining sector was informal and underregulated, contributing less than 1% to GDP. Recent reforms signal a major shift:

• Local Processing Requirement: Since early 2024, mining licenses are only granted to companies that commit to building local processing plants, aiming to add value domestically and create jobs.
• Formalization: Over 1,200 small-scale mining cooperatives have been formalized, and more than 2,000 mining marshals deployed to enforce standards and curb illegal mining.
• Community Agreements: New frameworks require mining companies to collaborate with local communities, ensuring transparency and equitable benefit-sharing.

The Investors — China, Australia, and Beyond

Chinese companies, including Jiuling Lithium Mining Company and Canmax Technologies, are investing over $800 million in lithium processing plants set to open in late 2025. These moves are part of China’s broader strategy to secure critical minerals for its electric vehicle and renewable energy sectors.

Foreign Interests — The $2.3 Million Deal

Australian mining interests have recently made headlines with a $2.3 million deal for Nigerian lithium mining sites. This is part of a broader trend of international interest, with over 10 foreign firms exploring Nigeria’s lithium sector, attracted by government incentives such as tax holidays, duty exemptions, and deferred royalty payments.

• Orosur Mining (Canada/UK): Through its subsidiary Lithium West, Orosur has entered a joint venture with Nigeria’s Jurassic Mines, with an initial $3 million commitment for the first phase.
• Jupiter Lithium (Australia): Backed by Australian and US investors, this project is developing major lithium deposits in Kaduna State, with plans for local processing and exports to Europe and America.
• Australia-based mineral exploration company Chariot Corporation is acquiring a 66.7% stake in Continental Lithium’s Nigerian hard-rock lithium portfolio for approximately $2.3 million.

Opportunities

• Economic Growth: Four major lithium processing plants, worth over $800 million, are set for commissioning by the end of 2025, promising thousands of jobs and local economic stimulus.
• Downstream Ambitions: Nigeria aims to build a domestic electric vehicle industry powered by locally produced lithium batteries.
• International Partnerships: A UN-backed study is helping Nigeria develop a roadmap for its critical minerals value chain, aiming to set international best practices and localize production of solar power components.

Challenges

• Governance and Regulation: Legal and policy frameworks for critical minerals remain fragmented, with weak enforcement and persistent illegal mining.
• Community Impact: Some local communities have yet to see promised benefits, and concerns over environmental pollution and social disruption persist.
• Foreign Control: Despite new policies, the sector is still dominated by foreign investors, especially from China and Australia, raising questions about how much value Nigeria can truly retain.

Can Nigeria Control Its Future?

Nigeria is laying the groundwork for a modern, transparent mining sector with policies emphasizing local beneficiation and sustainable development. However, the country’s ability to control its critical minerals future hinges on:

• Strengthening Legal Frameworks: Comprehensive, enforceable policies specific to critical minerals are essential.
• Ensuring Local Participation: Prioritizing community benefits, local content, and Nigerian ownership in mining projects is crucial.
• Balancing Foreign Investment: Leveraging international capital and expertise while retaining enough control to ensure long-term national benefits.

With the right reforms and sustained political will, Nigeria could become a global powerhouse in critical minerals. But the race is on, and the outcome will depend on how effectively the country can turn its resource wealth into sustainable, inclusive growth.

A Strategic Crossroads

Nigeria stands at a crossroads in the global race for lithium and critical minerals. The coming years will determine whether the country can seize this opportunity to drive sustainable, inclusive growth—or whether it will remain a resource-rich nation with limited control over its own destiny. The world is watching, and the stakes have never been higher.

Africa holds the key to the green future the world is racing toward. But it must move beyond being the world’s quarry. The mineral rush is already here — the question is whether African nations will control the terms or once again trade away the future.

To unlock real benefits, the continent needs:

• Transparent contracts
• Local processing mandates
• Investment in skills and tech
• Regional cooperation

The world is betting on batteries. Africa should bet on itself.