The Game-Changing Lithium Find in Nigeria
Nigeria has recently achieved a momentous feat by uncovering substantial deposits of lithium, a critical component utilized in the production of batteries for electric vehicles, laptops, and mobile devices. This noteworthy discovery has garnered interest from prominent figures, including the Chief Executive Officer of Tesla, Elon Musk, who has expressed a keen interest in establishing a trade partnership with Nigeria for the purpose of lithium mining. Nevertheless, Nigeria’s Minister of Mines and Steel Development, Olamilekan Adegbite, has rebuffed the proposal, indicating that Nigeria would only consider the notion if Tesla consented to constructing battery manufacturing facilities within the country.
The significance of this discovery is heightened by the drastic escalation in the price of lithium, which surged from $6,000 per tonne in 2020 to $78,000 per tonne in 2022. Additionally, experts anticipate that lithium will emerge as the most valuable mineral globally by 2040. Notably, Nigeria’s lithium reserves exhibit high grades, with the director-general of the Nigerian Geological Survey Agency, Dr Abdulrazaq Garba, unveiling that the lithium oxide content ranges from one percent to an astounding 13 percent, surpassing the conventional global exploration threshold of 0.4 percent.
The mining sector in Nigeria, akin to numerous jurisdictions, is rigorously regulated by the Federal Government through the Ministry of Mines and Steel Development. To protect its resources and supervise the exploration and exploitation of solid minerals, Nigeria enacted the Nigerian Mineral and Mining Act in 2007, conferring ownership and control of mineral-rich lands to the Federal Government. Unauthorized individuals are strictly prohibited from partaking in any form of mineral resource exploration or exploitation.
In order to engage in lithium mining or any form of solid mineral exploration in Nigeria, companies must procure specific mineral titles based on the nature of their intended mining activity. These titles encompass reconnaissance permits, exploration licences, small-scale mining leases, mining leases, quarry leases, and water use permits, each tailored to distinct mining operations.
The recent discovery of lithium harmonizes with the global emphasis on renewable energy sources, particularly the burgeoning demand for lithium batteries to facilitate the transition towards sustainable energy. This breakthrough presents an opportunity for Nigeria to attract foreign direct investment, bolster its gross domestic product, create employment opportunities, and augment its foreign exchange earnings through the export of finished products. Moreover, Nigeria can leverage technology transfer and embrace the future of energy.
For further elucidation on this subject, interested parties may contact Ibukun Konu, Somachi Orji, or Adaobi Amechi at Streamsowers & Köhn via telephone at (+234 1 271 2276) or through email at [email protected], [email protected], or [email protected]. Additional information can be accessed on the Streamsowers & Köhn website at www.sskohn.com.
