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China firms is going all in on lithium ventures in Nigeria: Canmax Technologies and Jiangxi Jiuling Lithium have taken a 75% stake in Ganfeng Lithium Industry in 2024, a Nigerian firm developing a lithium refinery in Nasarawa state, Bloomberg reported on Wednesday, citing company documents it obtained. Separately, Canmax is investing USD 200 mn in two additional lithium deposits in northern Nigeria in partnership with Nigerian Three Crown Mines.
Why Nigeria? Nigeria has significant untapped deposits of gold, tin, and lithium. However, extraction is predominantly conducted by artisanal miners on a small-scale or manual basis. In December, the government lifted a five-year ban on mining exploration in lithium-and-copper-rich Zamfara state, following the implementation of new attractive reforms to the sector.
The background: Ganfeng Lithium Industry drew scrutiny after breaking ground on a USD 250mn lithium refinery in 2023 due to its name’s similarity to Chinese lithium giant Ganfeng Lithium Group. The Nigerian Ganfeng then inked an agreement in September allowing the company to mine lithium for 10 years under permits held by a firm owned by the government of Nasarawa state.
ALSO- CATL + Lopal resume lithium refinery operations after halt: China’s Jiangsu Lopal Tech and EV battery manufacturer Contemporary Amperex Technology have resumed operations at their joint lithium carbonate refinery in China after a five-month pause, Bloomberg reported on Monday. The refinery — located in Yichun, Jiangxi province — is expected to produce 3.5k tons per month, Jiangsu Lopal’s media representative told the outlet.
MARKET REAX- The factory resumption has made it difficult for lithium prices to recover from a market surplus and unstable EV demand, Bloomberg reported separately on Tuesday. Asian lithium producer share prices are also taking a hit, and both CATL and Jiangsu Lopal’s shares dipped slightly after the announcement.
REMEMBER- Lithium prices were set to stabilize this year — after two years of an 86% price decline — on the back of surging EV sales in China and shuttered mines and refineries helping manage oversupply. It was expected, however, that the price adjustment would be halted if mines reopened.
