… anticipated to yield an estimated $350 million annually

…. targets 1.6 million tons per annum

Oredola Adeola

In a strategic effort to enhance Nigeria’s involvement in lithium mining, processing, and value addition, ASBA Group has initiated the construction of its $50 million Lithium Ore Separation Plant and 6 Megawatt CNG Gas Power Plant in the Wasa District of Abuja, anticipated to yield an estimated $350 million annually.

Alake Dele, Minister of Solid Minerals, conducted the foundation laying ceremony on Thursday monitored by Advisors Reports. 

Advisors Reports confirmed that this is the second major lithium plant to take off in Nigeria under the administration of President Bola Tinubu, following the inauguration of the $250 million Ganfeng Lithium Industry Limited factory located in the Endo community within the Udege Development Area of Nasarawa Local Government Area.

The Minister in his remark emphasized the importance of the plant for the Nigerian economy and the company’s commitment to investing in the country’s solid minerals sector. 

He further added that the ASBA group’s investment in the project reflects the growing importance of lithium in the global clean energy transition, adding that lithium-ion batteries are essential for electric vehicles and energy storage systems.

Alake therefore noted that the project also highlights the potential of Nigeria’s solid minerals sector, which has the potential to contribute significantly to the country’s economic development.

Engr. Adamu Hussaini, President of the ASBA Group of Companies, in his remark at the groundbreaking ceremony, stated that the significant investment cost a whopping $50 million, with $47 million for the whole factory and $3million for the power plant.

He emphasised that the first phase is expected to be completed by July 2024, with a target for the second phase completion before the end of 2025.

According to him, the entire Lithium Ore Separation Plant, with a capacity of 1.6 million tons per annum, will create 1,200 direct and indirect jobs and contribute to the development of the solid minerals sector in Nigeria.

Engr. Hussaini also stated that the 6MegaWatt CNG power plant will provide the necessary energy for the plant’s operations.

Following the groundbreaking, Adamu emphasised that the project is expected to be completed within a reasonable time frame, adding that the ASBA group is committed to adhering to the highest environmental and safety standards during the construction and operation phases.

Advisors Reports gathered that the ASBA group’s investment in the Lithium Ore Separation Plant and CNG Gas Power Plant is a significant step towards the development of Nigeria’s solid minerals sector and the country’s contribution to the global clean energy transition.

Lithium is a critical component of electric vehicle (EV) batteries, and its production in Nigeria is evidence of the country’s commitment to playing a vital role in the clean energy space, as well as its transition towards a carbon-neutral future.

Deliberate attempts at improving Nigeria’s lithium mining and processing industry are a significant step towards helping the country earn from the global lithium market, which is expected to grow from $43 billion in 2020 to $424 billion by 2030.

The project is expected to have a positive impact on the local economy, create jobs, and contribute to Nigeria’s economic growth and development.