Nigeria is advancing its lithium extraction efforts, driven by growing global demand, particularly for electric vehicle batteries. Nasarawa State is central to this activity, drawing local miners and foreign investment, especially from China. Although regulatory challenges and local disputes exist, the potential economic benefits of lithium are significant for Nigeria.
Nigeria is rapidly expanding its lithium extraction, especially in Nasarawa State, which holds significant reserves. The global surge in demand for lithium, powered by electric vehicle battery production, positions Nigeria as an up-and-coming player in this market. This growth attracts both local artisanal miners and foreign investments, highlighting the country’s potential in lithium production.
In regions like Gidan Kwano, artisanal miners extract lithium in open pits, often without permits. While illegal, this practice is a crucial income source for locals, including men, women, and children, who dig for lithium manually, sometimes using explosives. Raw lithium blocks are commonly sold to Chinese middlemen, and roadside warehouses are used for sorting and cleaning the mineral, although working conditions are generally poor and hazardous.
Chinese firms, such as Avatar and Ganfeng, have invested in local processing facilities to convert raw lithium into lithium oxide for export. China’s role in the lithium sector is increasing despite Nigeria’s attempts to diversify foreign investment sources. A recent agreement between Nigeria and France aims to promote mining projects, including lithium, though Chinese companies remain predominant due to regulatory obstacles faced by others like Tesla.
The Nigerian mining industry faces challenges from a developing regulatory framework and ongoing illegal mining operations. The government conducts enforcement against unauthorized mining, yet high demand fuels its persistence. Furthermore, local tensions and disputes over resource distribution have arisen, while armed groups have begun to control mining sites, complicating the landscape for lithium extraction.
With global lithium demand projected to soar by 2040, Nigeria is working to streamline its lithium sector for economic advantage. Key challenges include the establishment of local processing units and formalising mining activities. Future success will rely on effective regulation, attracting diverse investors, and securing mining zones, as interest in this strategic mineral grows among stakeholders.
The lithium demand surge is largely driven by its use in batteries for electric vehicles, causing countries rich in lithium resources, like Nigeria, to explore and develop their extraction capabilities. Nigeria’s lithium began gaining global attention due to its unregulated artisanal mining and considerable reserves, making it attractive to foreign investors, especially from China.
Nigeria’s lithium sector is poised for growth amidst shifting global demands. However, significant challenges arise from unregulated artisanal mining, foreign investment restrictions, and local tensions. Future success hinges upon effective regulation and the establishment of local processing plants to capitalise on the burgeoning market.
Original Source: energynews.pro