China’s Canmax signs lithium deal with Nigeria’s Kebbi state

A Chinese battery materials company, Canmax Technologies, has entered into an agreement to invest $200 million in lithium mining operations in Nigeria.

The deal, formalized last week with the Kebbi state government and local firm Three Crown Mines Limited, aims to develop lithium resources in the region.

Under the agreement, Canmax will hold an 85% stake in the joint venture, while Three Crown Mines will control the remaining 15%. The project involves setting up a modern facility for lithium extraction, beneficiation, and tailings processing, with Canmax overseeing operations and securing all output from the venture.

Three Crown Mines, a Nigerian mining company, has already completed much of the lithium exploration in the designated area, according to the announcement. Drilling assessments indicate significant lithium deposits, prompting the need for strategic investment to advance development.

Canmax is a major global supplier of battery materials, specializing in battery-grade lithium hydroxide and lithium carbonate. In the first half of 2024, its lithium materials division contributed nearly 90% of its total revenue.

In recent years, Africa has emerged as a key investment destination for Chinese lithium firms due to its vast untapped resources. Companies such as Sinomine Resource Group, Chengxin Lithium, and Yahua Group have expanded their presence in the region, capitalizing on growing global demand.

Industry reports suggest that lithium production in Africa could reach 285,000 metric tons of lithium carbonate equivalent (LCE) by 2025.

Canmax’s presence in Nigeria is not new. The company had previously collaborated with Avatar New Energy Materials to establish a lithium processing facility in Lafia, Nasarawa State, aiming to produce 4,000 metric tons of lithium daily.

During a meeting with President Bola Tinubu in May 2024, Canmax announced an additional $200 million investment to set up another lithium processing plant in Nasarawa.

Its latest move comes despite plummeting product prices. The price of lithium carbonate, a key raw material, has fallen below $10,949 per ton, down from a historical high of $82,123 per ton in 2022.