Governor Abdullahi Sule of Nasarawa State has successfully secured a $200 million foreign direct investment (FDI). This Chinese inflow will help establish a lithium factory in Nasarawa Local Government Area. The groundbreaking project is the result of the governor’s strategic investment drive and partnership with Jiuling Lithium, a leading Chinese miner and manufacturer of lithium carbonate.
RELATED: Nasarawa and NASENI to partner on lithium processing policy
During his visit to Jiuling Lithium’s headquarters in Fengxin County, China, Governor Sule gained first-hand insights into the company’s operations. Jiuling Lithium is renowned for its expertise in mining and producing lithium carbonate. This is a critical material used in manufacturing rechargeable batteries and renewable energy storage systems.
This investment represents a major step in positioning Nasarawa State—and Nigeria at large—as a key player in the global lithium value chain. Lithium is vital for the energy transition and the growing electric vehicle (EV) market.
Project Highlights and Commitments
- $200 Million Lithium Factory
Jiuling Lithium committed to establishing a state-of-the-art lithium processing factory with a capacity of 6 million tons. The project is expected to be completed within 18 months and will significantly boost Nigeria’s lithium production capacity. - Favorable Investment Climate
Jiuling Lithium praised Nasarawa State’s ease of doing business and favorable investment environment. The company also expressed interest in exploring other investment opportunities within the state. - Strengthening Renewable Energy Supply Chains
Lithium, a critical component of batteries used in smartphones, electric vehicles, and renewable energy storage systems, is in high demand globally. With its rich deposits, Nigeria is well-positioned to capitalize on the growing global lithium market, valued at billions of dollars annually.
Nigeria’s Growing Role in the Lithium Market
Nigeria is emerging as a major hub for lithium mining and processing, thanks to vast deposits found in Nasarawa, Kogi, Ekiti, Kwara, Cross River, Oyo, and Plateau States. Lithium’s significance has skyrocketed due to its role in the clean energy revolution. This is particularly in the production of batteries for electric vehicles (EVs) and renewable energy storage systems.
In 2024, Avatar New Energy Materials Co Ltd,, another Chinese firm, launched Nigeria’s largest lithium processing plant in Endo, Nasarawa State. This milestone signaled Nigeria’s potential as a leading player in the global lithium market. It helped to further attract interest from international investors.
During his visit to China, Governor Sule noted the immense economic potential of lithium mining and processing. He emphasised the job creation and revenue generation opportunities for Nasarawa State.
Strategic Investments Underway in Nasarawa
Governor Sule’s visit to China was part of a broader week-long investment drive aimed at attracting FDI to Nasarawa State. He was also invited by LOVOL Engineering Company Ltd, a global leader in farm equipment and machinery, as part of efforts to attract investment in agriculture and infrastructure.
The governor highlighted the state’s readiness to partner with global industry leaders to harness Nasarawa’s vast natural resources while promoting economic diversification.
President Tinubu’s Support for Lithium Investment
President Bola Tinubu has commended the rapid development of Nigeria’s lithium sector, particularly the inauguration of the Avatar New Energy Materials lithium plant in Lafia. He described these investments as proof of Nigeria’s growing attractiveness to foreign investors.
The administration’s Renewed Hope Agenda prioritizes investments in critical sectors like mining, renewable energy, and technology to accelerate economic growth and foster industrialization.
What This Means for Nigeria
The $200 million investment in Nasarawa’s lithium sector is expected to:
- Enhance Nigeria’s role in global lithium supply chains for EVs and clean energy.
- Create jobs and drive economic development in Nasarawa State.
- Boost foreign exchange earnings through lithium exports.
- Attract more foreign investors seeking opportunities in Nigeria’s mining sector.
- Support the country’s efforts to transition toward a greener, sustainable energy future.
Nasarawa growing reputation as a hub for global partnerships
Governor Sule’s proactive efforts to secure a $200 million lithium factory investment underscore Nasarawa State’s growing reputation as a hub for industrialization and global partnerships. With the completion of this project, Nigeria is set to strengthen its foothold in the lucrative lithium market, boosting its economy while contributing to the global shift toward renewable energy.