Chinese lithium firms take over copycat Nigeria refinery project

Two Chinese manufacturers have taken over a Nigerian company that raised eyebrows in 2023 when it started building a lithium refinery in the country using a name that was very similar to one of the biggest and best-known Chinese producers.

A joint venture between Canmax Technologies Co. Ltd. and Jiangxi Jiuling Lithium Co. Ltd. last year took a controlling interest in Ganfeng Lithium Industry Ltd., a firm developing a lithium plant in the north of the West African nation, according to company documents obtained by Bloomberg.

Nigeria-registered Ganfeng was founded by Chinese businessmen in 2022, and created confusion a year later when it hosted a groundbreaking ceremony to kick off construction of the processing plant, which local authorities said will cost $250 million.

Shortly after the event, the company issued a statement to local media saying it had “no formal affiliation whatsoever” with Ganfeng Lithium Group Co. Ltd., one of the world’s biggest suppliers of lithium chemicals. A company representative offered no explanation as to why it was trading under a similar name.

Canmax and Jiuling’s takeover of the company — which corporate records show occurred in mid-2024 — brings financial clout and operating nous to the development of Nigeria’s nascent lithium industry, which has typically shipped raw ore to China for further treatment.

The investments signal that Chinese lithium companies are doubling down on efforts to lock down feedstock in anticipation of soaring future demand for the metal used in electric-vehicle batteries. They’ve been investing heavily in Africa’s lithium deposits from Mali to Zimbabwe, even after prices tumbled almost 90% from a peak in 2022.

Separately, Canmax also announced this month that it will invest over $200 million to develop two lithium mining deposits elsewhere in northern Nigeria, working with local company Three Crown Mines Ltd.

Shenzhen-listed Canmax is a large producer of lithium chemicals whose founder, Pei Zhenhua, made his fortune as an investor in Contemporary Amperex Technology Co Ltd., the world’s top EV battery maker. Pei and CATL co-own a separate lithium mining and processing joint venture. Jiuling is a chemical producer based in Jiangxi – one of China’s lithium mining hubs – and a supplier to CATL.

Nigeria has sizable untapped deposits of metals including gold, tin and lithium, but most extraction is done informally by so-called artisanal miners on a small-scale or manual basis.

The Nigerian Ganfeng signed 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 – the location of the plant under construction.

The first phase of the facility is due for completion by the middle of this year and the second phase four months later, said Ibrahim Abdullahi, the chief executive officer of the state’s development and investment agency. “Nasarawa state is pleased with this investment and welcomes more of it,” he said.

Canmax and Jiuling, which together own 75% of the Nigerian Ganfeng, declined to comment. Nigeria’s federal mines ministry didn’t respond to questions about the acquisition or how much lithium concentrate it will produce.

By William Clowes, Annie Lee and Nduka Orjinmo, Bloomberg

Related story: Global investors eye Nigeria’s lithium reserves

Nigeria seeks to collaborate with India to speed up energy transition

Nigeria is seeking to collaborate with India to accelerate its energy transition plans, a senior Nigerian government official said on Tuesday.

Other than funding, Nigeria plans to seek technical assistance from India to implement its green energy plans, Agbu Kefas, governor of Nigeria's Taraba state, told Reuters on the sidelines of the India Energy Week.

"(The) world is moving towards green energy and we also have to move along. But the challenges we have is the funding to be able to meet up with this," Kefas said.

India is ramping up its non-fossil fuel capacity, planning to connect a record 35 gigawatts of solar and wind energy capacity to its grid during the fiscal year ending March 2025.

Nigeria has already urged the United States to provide it with funding to help Africa's leading oil producer accelerate its energy transition plans.

Kefas said alternative energy is also the solution for communities that have been unable to connect to the national grid.

Nigeria's power grid often suffers from frequent failures due to ageing infrastructure, under-investment and vandalism, resulting in frequent blackouts.

Reuters

Video - Nigeria’s real estate sector overtakes oil to become third-largest contributor to GDP

Contributing nearly 7.2 percent of GDP in 2023, Nigeria’s real estate sector now ranks as the country’s third-largest industry after crop production and trade. The surge in property investments is driven by high returns and a growing housing deficit.

CGTN

Video - Health experts concerned as Lassa fever cases surge in Nigeria

Nigeria's Centre for Disease Control, NCDC reported nearly 300 cases of Lassa fever in the country since the beginning of the year. Health experts are calling for urgent measures to control rats, as part of efforts to curb the spread of the disease.

CGTN

MTN hikes data prices, Nigerians outraged amid rising living costs

Nigeria’s leading telecommunications provider, MTN, has implemented a price hike on internet plans following the Nigerian Communications Commission's (NCC) approval of a 50% tariff increase in January.

Addressing user concerns, MTN wrote: “Y'ello! Thanks for stopping by, We apologise for any inconvenience and delayed Response. A price increase has been implemented to enhance our services and serve you better, which is why you are seeing the updated amount."

Under the revised pricing, the 1.8GB monthly plan now costs ₦1,500, replacing the previous 1.5GB plan that was priced at ₦1,000. The 20GB plan has increased to ₦7,500 from ₦5,500, while the 15GB plan now costs ₦6,500, up from ₦4,500.

Larger data bundles have seen even steeper increases. The 90-day 1.5TB plan has jumped from ₦150,000 to ₦240,000, while the 600GB 90-day plan has risen from ₦75,000 to ₦120,000.

Telecom operators push for tariff hike

Major telecom providers in Nigeria, including MTN, Airtel, and 9Mobile, have long advocated for price adjustments to align with economic realities. Despite mounting operational costs driven by inflation, telecom operators have been unable to increase prices for over a decade.

Following last month’s announcement of a looming telecom tariff hike, MTN Nigeria’s share price surged, reflecting renewed investor confidence in the company’s profitability after two years of sustained losses.

MTN Nigeria has been working to accelerate its earnings and recover from these losses. The approved tariff increase is expected to help mitigate the effects of macroeconomic challenges and support the company’s financial stability.

Data tariff hike sparks outrage

The price hike has sparked concerns and outrage among customers, who argue that prior notice about the implementation date should have been communicated.

By Adekunle Agbetiloye, Business Insider Africa