Nigeria’s lithium reserves, valued over $34 billion, are in high demand for EV batteries and renewable energy storage. Two factories are operational with another being built, as global competition heightens. Effective government policies are required to attract investments and manage the burgeoning lithium sector sustainably.
Nigeria’s lithium reserves, valued at over $34 billion, are experiencing a surge in global demand, primarily due to their pivotal role in electric vehicle (EV) batteries and renewable energy storage. The country aims to become a significant player in the lithium market amidst the worldwide rush for this essential mineral, critical for the green energy transition.
Notable developments include the inauguration of two lithium factories, with another underway, as Nigeria’s international mining industry increasingly focuses on lithium production. The rapid growth of the global lithium market, particularly driven by the EV sector, is prompting countries to secure essential supplies, with projections showing significant future demand.
Analysts predict the lithium market may grow substantially in the next decade, influenced by global efforts for net-zero emissions. The mineral underpins technologies such as EVs, renewable energy storage, and consumer electronics, establishing it as a vital resource for a sustainable future.
Nigeria, with lithium deposits discovered in Plateau, Oyo, and Kaduna states, has a chance to design better policies for resource extraction than it did for gold. Experts emphasize the need for tailored governmental policies to attract investment, simplifying documentation processes to facilitate mining licences and permits.
While lithium mining operations are active in various Nigerian states, including Nassarawa and Kogi, the competition for resources is intensifying. International investments, particularly from China, are emerging rapidly, as companies express intentions to build significant lithium processing facilities.
However, concerns regarding thorough exploration and regulatory practices persist, as highlighted by local experts. Additionally, the growing demand may expose Nigeria to challenges, including conflicts over mineral rights and issues associated with illegal mining activities.
Nigeria’s lithium reserves position it as a potential leader in the global lithium market amid increasing international demand, largely driven by the transition to electric vehicles and renewable energy. To capitalise on this opportunity, the Nigerian government must implement effective policies to streamline investment processes and ensure sustainable mining practices. Major international investments, particularly from China, indicate a robust interest in Nigerian lithium, although regulatory oversight is crucial to managing these developments responsibly.
Original Source: businessday.ng