Chinese firms Canmax and Jiuling have acquired control of Nigeria’s Ganfeng Lithium Industry, a company that drew attention for its similar name to a prominent Chinese producer. The acquisition represents a strategic investment in Nigeria’s lithium sector, which historically shipped raw materials abroad. Canmax has also announced plans for additional investments in lithium mining within the country.
A pair of Chinese firms, Canmax Technologies Co. Ltd. and Jiangxi Jiuling Lithium Co. Ltd., has acquired a significant interest in a Nigerian lithium processing company that was established in 2022. This firm, named Ganfeng Lithium Industry Ltd., drew attention for having a name closely resembling Ganfeng Lithium Group Co. Ltd., a major producer of lithium chemicals. This acquisition occurred mid-2024, underpinning the growing financial interest of Chinese companies in Nigeria’s lithium sector, which has historically exported raw materials to China for processing.
The Nigerian Ganfeng company stirred controversy last year by holding a groundbreaking ceremony for its processing plant, estimated to cost $250 million. Following the event, the firm clarified it had “no formal affiliation whatsoever” with Ganfeng Lithium Group Co. Ltd. However, it did not provide an explanation for the similar naming. The acquisition by Canmax and Jiuling aims to bolster Nigeria’s emerging lithium industry, reflecting a strategic move by Chinese firms to secure resources for the increasing demand for lithium in electric vehicle batteries.
Alongside this acquisition, Canmax announced an additional investment exceeding $200 million in two lithium mining projects in northern Nigeria, partnering with local entity Three Crown Mines Ltd. Canmax is recognized as a significant producer of lithium chemicals, with its founder Pei Zhenhua being a notable investor tied to the leading electric vehicle battery manufacturer, Contemporary Amperex Technology Co Ltd.
The lithium-rich regions of Nigeria remain underexploited, primarily due to informal mining practices by small-scale artisanal operations. The Nigerian Ganfeng has secured a mining agreement for ten years, leveraging permits issued by the state of Nasarawa, where the processing plant is currently under construction. The facility’s first phase is expected to be completed by mid-2024, with the second phase slated for completion shortly thereafter.
Ibrahim Abdullahi, CEO of the development agency for Nasarawa state, expressed approval for this investment, indicating an openness to further developments in the state’s mining sector. The federal ministry of mines has yet to comment on the acquisition’s impact or the projected lithium concentrate output.
The acquisition by Canmax and Jiuling represents a significant shift in Nigeria’s lithium mining landscape, indicating robust Chinese investment in African resources. As demand for lithium rises, this move is strategic in locking down critical feedstock. With the completion of the lithium processing plant and additional investments in mining, Nigeria may establish a stronger foothold in the global lithium supply chain, although the sector faces challenges from informal mining practices.
Original Source: www.mining.com
