FG plans lithium plants to cut battery imports

The Federal Government says it will build three lithium processing factories to stop Nigeria from exporting raw lithium and then importing expensive batteries made from it.

The plan was disclosed on Monday in Abuja by Vice-President Kashim Shettima, represented by Tope Fasua, Special Adviser to President Bola Tinubu on Economic Affairs. This was reported by BusinessDay on November 9, 2026 in the story titled "FG to establish three lithium processing factories to cut battery imports".

What government plans to do

According to BusinessDay, the government will set up three lithium processing plants in Nasarawa, Kaduna and Abuja. The Vice-President did not give investment amount or timeline, but he said it is part of President Bola Tinubu's push to put Nigeria in the global battery manufacturing chain.

This is not the first lithium project. Nigeria already has big projects underway:

• A $600 million lithium processing plant in Nasarawa ready for commissioning - mentioned by Minister of Solid Minerals Dele Alake in January 2026.
• A $200 million lithium refinery near Abuja.
• A new $50 million lithium processing complex outside Abuja, with more planned for Nasarawa, Kogi, Kwara and Ebonyi.

Overall, Dele Alake said Nigeria has attracted over $2 billion in foreign investment for lithium and rare earth in the last two years, from companies like Canmax Technologies, Jiuling Lithium and Avatar New Energy.

Why lithium matters now

Explain lithium like to a first-time reader: Lithium is a very light metal. It is the main thing inside rechargeable batteries. Your phone battery, your power bank, your laptop, and electric car batteries all need lithium. Without lithium, you cannot store electricity.

The world now wants more lithium because everybody is moving from petrol to electric cars and solar power. Solar needs batteries to store light for night use. So the price and demand for lithium have gone high.

Shettima said global competition for critical minerals like lithium, semiconductors and AI has changed world trade. Countries that only dig and export raw minerals lose, while those that process it make more money.

Nigeria has lithium in almost every state, according to government. But before, Nigeria was exporting raw lithium for small money, and importing batteries for big money. Government wants to stop that.

What it could mean for jobs and imports

If these three factories work:

1. Jobs: A single lithium plant in Nasarawa (Endo community) run by Diamond New Energy, Jiuling and Canmax is expected to create 1,000 direct jobs and 2,000 indirect jobs - drivers, suppliers, food sellers around the factory. Three more plants could triple that.

1. Less battery import: Nigeria currently imports lithium batteries from China for phones, solar inverters and motorcycles. If we process lithium here, we can make batteries here. That will cut import bill and save dollars. The Energy Commission CEO Mustapha Abdullahi has said government may ban battery import once local production is in mass.

1. More revenue: Processing raw ore to 6% lithium concentrate, then to lithium carbonate, adds value. For example, 9,000 tonnes of raw ore can produce 2,250 tonnes of concentrate, then 80,000 tonnes of lithium carbonate per year worth millions of dollars. That means more royalties for FG and more money for host communities.

But experts say government must fix power, roads, and stop illegal mining for these factories to truly work.