Nigeria Aims To Become Africa’s EV Battery Manufacturing Hub
Nigeria last Friday commissioned its first and largest lithium processing plant, located in Nasarawa state, North-Central.
Built by Avatar New Energy Materials Company Limited, a Chinese firm, the plant is capable of processing up to 4000 metric tonnes per day.
The country has large deposits of lithium in Nassarawa, Kogi, Kwara, Ekiti, and Cross River States. The mineral resource is used in the production of rechargeable batteries and electric vehicles.
The Africa’s largest economy is looking at tapping on the billion-dollar global lithium market with discoveries of large lithium deposits in the country.
To be allowed to mine and export raw lithium, the Nigerian government has mandated that companies must set up processing and refining plants in the country.
Speaking recently during a meeting with Prime Minister Mark Rutte of the Netherlands at his official residence, known as The Catshuis in The Hague, President Bola Tinubu said Nigeria has high-grade lithium deposits that can power the global clean energy future.
“Taking a holistic view of the world order, there is a tremendous opportunity between us across trade spheres but especially in solid minerals, where we have high-grade lithium deposits that we know can power the clean energy future of the world. There is excellent value-additive opportunity in Nigeria. The world knows us for oil. They will soon know us for greater innovative exploits in other areas,” Tinubu was quoted in a statement by his spokesman, Ajuri Ngelale.
$200m for another plant
Still in the euphoria of Avatar’s 4,000 metric tonnes per day plant, another Chinese firm, Canmax Technologies, has announced a new investment of $200 million for another lithium processing plant in the same Nasarawa State. The company is responsible for over 30 percent of global battery material production.
Tinubu on Friday met with Nasarawa State Governor Abdullahi Sule; Chairman of Avatar, Hi Yongwei; and Chairman of Canmax Technologies, Zhenhua Pei.
Expressing delight in the inauguration of the new lithium plant and the announcement of new investment plans, the president urged the Chinese firms to prioritize environmental protection, community engagement, and corporate social responsibility initiatives as integral parts of their operations.
”There are other aspects of lithium that you are exploring in the country, especially in battery production. Nigeria is a huge market for solar panels. Africa is a major consumer of solar technologies. I do not see why these panels and batteries cannot be produced here. The labour is cheaper. Our youths are vibrant and skilled. Our people are brilliant and adapt to new technology. The economy is increasingly more vibrant, and Nigeria is dependable. We have the consumption capacity and a surplus of steady-handed citizens with gifted minds and an innate drive to work and produce.
”You must not leave the community in ruins as you explore for our high-grade minerals. You must be concerned with cooperation and always care for the community.
”We are caring partners. We want your investments to succeed so that you can expand further. Whenever you call on us, we will help you. You can, in mutually-beneficial collaboration with us, dominate the solar panel market as part of a revolution in Africa and the West African sub-region.
”You can always promote the interest of China and Nigeria as the best place in Africa to do business. We are preparing to produce in this country the solar technologies that the entire continent will use,” he said.
Tinubu pledged support to the Chinese firms, adding that Nigeria is open to business.
”It is a great joy to have you (the Chinese executives) in Nigeria. It is part of our campaign that Nigeria is open for business. We congratulate your courage in believing in us and the inauguration of the new factory.
”I can assure you that we will continue to give you the necessary support and encouragement. This is an opportunity for you to help tell the rest of the investment world that Nigeria is solid and open for business,” he said
According to Sule, Avatar is a $500 million turnover company.
”The company that we just commissioned today in Nasarawa is a 500-million-dollar turnover company. They are happy, and they have seen enough potential to mine lithium in the region for the next 15 to 20 years,’’ the governor said.
Meanwhile, the Federal Government has embarked on proactive measures to address the risks posed by abandoned mines across the country, left behind by colonialists in the 1950s and 1960s. This was disclosed by the Minister of Solid Minerals, Dele Alake.
He said: ”We are in the process of putting in place remedial measures, converting some of them into constructive uses, like farming and irrigation.
‘To ensure that companies operating in this sector no longer abandon the mines after they have finished operations, it is part of our requirements that for licencing fresh applicants, there must be concrete remediation plans that are viable and working before any application is approved for mining.”
The Minister noted that applicants seeking mining licences must demonstrate a commitment to enhancing local value across the entire mining value chain, aligning with the government’s agenda to promote indigenous participation and economic empowerment.
”Your Excellency, in a nutshell, permit me to revel in the belief with conviction that under your leadership, with all the policy initiatives you have put in place, there is nowhere else for Nigeria to go but forward. Forward ever and backward never,” a statement by Tinubu’s spokesman, Ngelale quoted Alake as saying.
