Nigeria is rich in solid minerals and metals, with over 40 different types found beneath its surface, including significant quantities of lithium ore. The discovery of high-grade lithium deposits presents a transformative opportunity for the country’s economy, especially as global demand for these minerals surges due to their critical role in producing batteries for electric vehicles (EVs) and renewable energy storage.
In 2021, global lithium mine production reached a record high of 100,000 metric tonnes, marking a 21% increase from 2020. Lithium, a metallic mineral, is now in high demand across various manufacturing industries. A few years ago, the majority of lithium demand was divided between ceramics and glasses (35%), and greases, metallurgical powders, polymers, and other industrial uses (over 35%), with less than 30% used in batteries. However, by 2030, batteries are expected to account for 95% of lithium demand.
According to Statista, annual lithium demand will reach approximately 1.5 million metric tonnes of lithium carbonate equivalent by 2025, and over 3 million metric tonnes by 2030, with EVs driving about 84% of total demand by that time.
Overview of Global Lithium Producers
As of 2020, Australia (40,000 tonnes), Chile (20,600 tonnes), and China (14,000 tonnes) were responsible for about 86% of the world’s lithium production. Other significant producers include Argentina (6,200 metric tonnes), Brazil (1,900 metric tonnes), Zimbabwe (1,200 metric tonnes), the USA (900 metric tonnes), and Portugal (900 metric tonnes).
Given this concentration of production, the search for lithium has expanded to Africa, where several countries have active mines and significant deposits. Nigeria is now part of this list, with untapped lithium reserves awaiting exploration.
The Potential of Nigeria’s Lithium Deposits
Prior to the discovery of high-grade lithium in Nigeria, low-grade varieties were found in small quantities across the country, often in conjunction with other minerals such as cassiterite, columbite-tantalite, and pegmatites in states like Nasarawa, Kogi, Ondo, Osun, Zamfara, Kaduna, Oyo, and Cross River. Although Nigeria’s production of low-grade lithium was relatively small at 50 metric tonnes in 2019, it marked a significant development. By comparison, Zimbabwe produced 1,200 metric tonnes of lithium in the same period.
Lithium currently contributes less than 1% to Nigeria’s Gross Domestic Product (GDP), but its development is seen as a crucial catalyst for economic growth, job creation, and diversification away from the country’s traditional dependence on oil and gas. Nigeria’s lithium deposits are among the most promising in the world, with lithium oxide concentrations ranging between 1% and 13%. This high-grade ore positions Nigeria as a potential major player in the global lithium market, where prices surged from $6,000 per tonne in 2020 to $78,000 per tonne in 2022. The increase reflects lithium’s critical role in the energy transition, with some projections suggesting it could become the most valuable mineral by 2040.
Dr. Abdulrazaq Garba, former Director-General of the Nigerian Geological Survey Agency, has highlighted the quality of Nigeria’s lithium, noting that it exceeds global standards. Typically, exploration for lithium begins at a concentration of 0.4% lithium oxide, but Nigeria’s deposits surpass this threshold, underscoring their potential.
Investment Opportunities and Economic Impact
Experts believe that the discovery and development of Nigeria’s lithium deposits could be a game-changer for the country’s economy. With the right investments and regulatory support, Nigeria could become a leading exporter of lithium, driving economic growth and establishing itself as a key player in the global energy transition.
Investing in Nigeria’s lithium deposits presents a significant opportunity, driven by high global demand and the country’s superior ore grade. This could attract substantial foreign direct investment (FDI), leading to increased export revenues, job creation, and technology transfer. Developing this sector also holds the potential to significantly enhance Nigeria’s GDP. By tapping into the growing markets for electric vehicles and renewable energy technologies, Nigeria can diversify its economy, reducing its heavy reliance on oil and fostering a more sustainable economic model.
The Nigerian Mineral and Mining Act of 2007 provides a structured regulatory framework for investment, ensuring that exploitation activities are conducted sustainably and legally. The government issues various mineral titles, including exploration licenses and mining leases, offering a clear pathway for investors to engage in the sector.
In conclusion, Nigeria’s lithium reserves hold significant potential to spur economic growth and attract investment, positioning the country as a major player in the global shift towards renewable energy. However, the success of this endeavour will depend on securing substantial investment and ensuring a supportive and stable regulatory framework.
