Economy

Chinese Investors Double Lithium Plant Capacity in Nasarawa to 6,000MT

Chinese investors have increased the capacity of the lithium processing plant in Nasarawa State from 3,000MT to 6,000MT.

Governor Abdullahi Sule disclosed the development on Wednesday after a meeting with President Bola Tinubu at the Presidential Villa, Abuja.

He said the plant, located in Nasarawa Local Government Area, is ready for commissioning and will be inaugurated by the President upon his return from a scheduled trip to France.

The new facility positions Nasarawa as a major hub for lithium processing in Nigeria as global demand for the mineral continues to grow on the back of the clean energy transition.

Lithium is a critical input in electric vehicle batteries and energy storage systems, making it a key focus for foreign investors.

Governor Sule said the completion of the project underscores investor confidence in Nigeria’s mineral resources. He noted that the latest investment came from a fresh group of Chinese firms encouraged by the quality and commercial viability of the state’s lithium deposits.

According to Sule, the plant reflects a wave of Chinese-backed investments in Nasarawa’s mining sector following geological surveys that confirmed high-grade deposits.

He credited the Tinubu administration’s economic reforms for creating a more enabling environment for such large-scale projects.

“There has been significant revenue improvement. With the huge improvement we have seen, we came with the passion to go ahead and do more. Instead of borrowing from the banks, we are now utilising the improved resources that we have,” the governor stated.

The 6,000MT plant adds to Nigeria’s efforts to attract value-added investments in critical minerals rather than exporting raw commodities.

Analysts say the project could help Nigeria capture more of the lithium value chain and support industrialisation linked to the clean energy economy.

The Federal Government has highlighted lithium and other critical minerals as part of its diversification strategy since the end of the Buhari administration. With Nasarawa now hosting two operational lithium plants, the state is emerging as a focal point for the sector.

Governor Sule said further investments will be channelled into agriculture and infrastructure development as new revenues from mining flow into state coffers.

He added that Tinubu’s upcoming commissioning of the plant will signal Nigeria’s commitment to positioning itself as a player in global clean energy supply chains.