Nigeria has commissioned what the Federal Government says is the country’s largest lithium processing plant, marking a significant step in its strategy to increase domestic value addition in the solid minerals sector and reduce reliance on raw mineral exports.
President Bola Tinubu, represented by Vice President Kashim Shettima, on Thursday inaugurated the Diamond New Energy Company Ltd. lithium processing facility in Endo Community, Nasarawa Local Government Area of Nasarawa State.
The facility is designed to process 6,000 metric tonnes of lithium-bearing ore per day, translating to an annual processing capacity of about three million metric tonnes. The project represents an estimated $250 million investment and has already created more than 1,000 direct jobs and over 2,000 indirect jobs, according to the Federal Government.
Speaking during the commissioning ceremony, President Tinubu described the project as a milestone in Nigeria’s industrialisation agenda, stressing that the country must shift from exporting raw minerals to producing higher-value processed products.
“What changes a nation is a deliberate movement from extraction to processing, from potential to production, from raw materials to value-added goods,” the President said in remarks delivered by the Vice President.
The commissioning aligns with the Federal Government’s broader policy to develop downstream mineral processing industries and capture a larger share of the global critical minerals value chain. Lithium has become one of the world’s most sought-after minerals because of its essential role in manufacturing rechargeable batteries used in electric vehicles, consumer electronics and renewable energy storage systems.
Minister of Solid Minerals Development, Dele Alake, said the project reflects the impact of recent reforms aimed at encouraging investors to establish processing facilities within Nigeria rather than exporting unprocessed ore.
According to the minister, the government now requires investors seeking mining licences to present credible plans for local processing and value addition. He added that ongoing reforms are expected to attract approximately $2.6 billion in mineral processing investments over time.
Nasarawa State Governor Abdullahi Sule said the state remains committed to creating an enabling environment for responsible mining and industrial investment. He noted that Nasarawa’s abundant mineral deposits position it as one of Nigeria’s leading destinations for mining-related investments.
The inauguration comes as global demand for lithium continues to accelerate, driven by the rapid expansion of electric vehicle production and the transition to cleaner energy technologies. Industry analysts say investments in mineral processing could strengthen Nigeria’s position in the global battery supply chain while generating employment, boosting export earnings and supporting economic diversification beyond oil.
