Nigeria’s $250 Million Lithium Gamble: Why Endo, Nasarawa Could Become Africa’s Next Battery Metals Hub

Endo, Nasarawa State is rapidly transforming into Nigeria’s lithium powerhouse, attracting global attention as the country pushes to diversify beyond oil. At the center of this transformation is a $250 million lithium processing plant under construction by Ganfeng Lithium Industry Limited, a Chinese-owned Nigerian venture.

Launched in October 2023 with the backing of the federal government, the project represents one of the largest single foreign investments in Nigeria’s solid minerals sector. It reflects President Tinubu’s policy shift to process minerals locally rather than export raw ore, a strategy designed to capture more value, create jobs, and build a sustainable battery value chain in West Africa.

Key Highlights of the Endo Lithium Project

Investment Size: $250 million (capex)

Location: Endo community, Udege Development Area, Nasarawa State

Job Creation: Thousands of direct and indirect opportunities

Policy Alignment: Part of Nigeria’s beneficiation-first mining strategy

Regional Significance: Positions Nasarawa as a leading lithium hub in Africa

Capacity Confusion: 18,000 Tonnes a Day or Much Less?

At the groundbreaking, officials claimed the facility would process 18,000 tonnes of lithium ore per day, equivalent to 6.6 million tonnes annually. Yet the same announcement also cited a 4.5 million tonnes per year figure, creating inconsistencies. Later interviews referenced a much smaller 4,000 tonnes per day capacity, with a projected 300,000 tonnes annually. Until commissioning begins, investors are advised to treat these numbers as aspirational, not guaranteed.

Policy Tailwinds: “Process in Nigeria or Don’t Operate”

Nigeria’s new mining licensing rules make it clear: companies must process minerals locally to qualify for operational permits. This regulatory stance strengthens the Endo project’s prospects while signaling to global investors that value addition is now non-negotiable in Nigeria’s mining sector.

Who Really Owns “Ganfeng Lithium” in Nasarawa?

A critical due diligence note: Ganfeng Lithium Industry Ltd. (Nasarawa) is not affiliated with the Shenzhen and Hong Kong listed Ganfeng Lithium Group Co. Ltd., one of the world’s largest lithium producers. Instead, the Nigerian entity is a locally registered company with Chinese owners. This means investors should verify ultimate ownership and financial backing before assuming the Endo venture enjoys the balance sheet strength of the global Ganfeng brand.

Skills Development & Local Content

Nasarawa State officials emphasize that the refinery will be larger than the Sagamu facility in Ogun State.

As part of local content commitments, the company has pledged to train 100 Nasarawa youths in lithium refining, building a skilled workforce for the emerging battery metals industry.

Timeline & Regional Build-Out

Construction period: 24 months (from October 2023)

Expected commissioning: Mid-to-late 2025 (subject to infrastructure readiness)

Clustering effect: Nigeria is attracting multiple Chinese backed lithium refineries across the north central region, positioning the country as a future African lithium hub.

ESG and Risk Factors

Nigeria’s lithium rush comes with environmental, social, and governance (ESG) risks. Informal mining and child labour concerns have been documented, making traceability and compliance essential for attracting

European and global offtakers. Downstream buyers especially EV manufacturers will demand responsible sourcing certifications before committing to supply contracts.

Investment Outlook: What Global Investors Should Watch

Strategic Fit: Aligns with Nigeria’s green industrialization agenda and the global EV supply chain.

Government Support: Federal and state authorities are directly backing the project with policy, security, and incentives.

■■ Due Diligence: Verify ownership structure, financing strength, and true processing capacity.

■■ Market Competition: Multiple refineries in the region could create both synergies and competition for skilled labour and feedstock.


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metals investment Africa, lithium processing West Africa, Nigeria mining sector diversification, EV supply

chain Nigeria, solid minerals investment Africa.

Interface Africa Magazine
Interface Africa Magazine
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