Nasarawa state secures $2 million lithium deal with Chinese firm

Nasarawa State has inked a $2 million supplementary lithium pact with Chinese firm Diamond New Energy, aiming to bolster the state's lithium processing framework and ensure a steady supply of raw materials for a key refining plant. The deal was inked at the Nasarawa State Governor’s Lodge in Abuja, presided over by Governor Abdullahi Sule, who recently toured China for investment opportunities.

The governor highlighted the agreement's dual purpose: safeguarding both the state's and company's interests by maintaining refinery operations and job security. This follows the inauguration of Nigeria's largest lithium processing plant in Nasarawa, capable of processing 6,000 metric tonnes daily. Governor Sule stressed how the agreement would support industrial growth, maintain employment, and ensure the state profits from the company's activities.

Ibrahim Abdullahi, Managing Director of Nasarawa State Investment Development Agency (NASIDA), noted that the supplementary pact builds on a 2024 mining cooperation deal, leading to the construction of West Africa's largest lithium refinery. The new arrangement will facilitate the continuous supply of lithium from the state's mining block to fuel the refinery, generating immediate financial gains for the state through the $2 million payment and ongoing revenue.

Diamond New Energy's David Siong emphasized the company's commitment to boosting local processing and jobs in Nasarawa State. This agreement adds to Nasarawa State's growing status as a lithium processing hub, with the federal government projecting $2.6 billion in mineral processing investments, including significant lithium projects in the state.

Nigeria's lithium sector is gaining traction due to the country's high-grade lithium resources, including spodumene and lepidolite, vital for electric vehicle batteries, electronics, and energy storage systems.