Nigeria’s Path to A $37 Billion Lithium Market
Thor Explorations Ltd. has recently unveiled promising developments regarding Nigeria’s potential in the global lithium market. With a staggering value of $37 billion, the company has confirmed the presence of lithium deposits in the initial drilling results.
In the words of Segun Lawson, the President and CEO of Thor Explorations Ltd., the first set of drilling results have revealed “significant” mineralised pegmatites. The focus of the drilling program was to confirm and delineate lithium-bearing mineralisation, particularly spodumene and lepidolite, at depth in the West Oyo Project Area.
Apart from Nigeria, Thor Explorations Ltd. is also active in Senegal and Burkina Faso. The company holds a 100 percent interest in the Segilola Gold Project in Osun State and has acquired over 600 square kilometres of exploration tenure in Nigeria. The Oyo State Lithium Project comprises approximately 38km2 of exploration tenure and is located within 200 kilometres of Lagos, Nigeria’s commercial capital.
The global lithium market, valued at USD 37.8 billion in 2022, is projected to reach USD 89.9 billion by 2030. This growth is expected to be fuelled by the increasing demand for rechargeable lithium-ion batteries across various industries, including automotive, consumer electronics, industrial, and energy storage.
The surge in demand for lithium-based power is closely linked to the rapid expansion of the electric vehicle (EV) market. For instance, Tesla is estimated to require approximately 1,000 kilotons of lithium carbonate equivalent per year by 2030, which is 16 times its 2022 needs and 30 percent more than the current global production.
In Nigeria’s case, the country’s geological landscape is conducive to potential large-scale mining of lithium deposits in areas such as Kaduna. Moreover, the government views the battery minerals market as an opportunity to diversify the economy and reduce dependence on petroleum production.
However, there are challenges that need to be addressed. Illegal mining, inadequate government policies, and insecurity pose significant threats to the sector. In order to fully seize this opportunity, experts recommend the formalisation of the sector and the promotion of legal and responsible mining practices. Other countries are also implementing reforms to attract investments in the lithium sector, such as Chile, which recently clarified its mining rules with a new public-private partnership model.
Nigeria has a lucrative opportunity to capitalize on the burgeoning lithium market. With strategic approaches, this could significantly contribute to the country’s economic diversification and growth. As Thor Explorations Ltd. continues its exploration and drilling efforts, Nigeria holds exciting prospects in the global lithium market.
