The global demand for lithium-ion batteries (LIBs) is expected to grow significantly in the coming decade. These batteries play a crucial role in energy storage systems, electric vehicles, and various electronic devices. Nigeria, with its abundant mineral resources, has the potential to become a key player in lithium battery production. However, several challenges need to be addressed to tap into this opportunity.
This feasibility study explores the potential for establishing lithium battery production in Nigeria. It examines factors like market demand, resource availability, production costs, and potential risks and rewards.
Market Opportunity:
The demand for lithium batteries is rapidly growing due to the rise of electric vehicles and energy storage solutions. Nigeria's growing population and urbanization present a significant domestic market opportunity. Additionally, the country's strategic location could position it as a regional battery production hub.
Resource Availability:
Nigeria recently discovered high-grade lithium deposits with oxide content ranging from 1% to 13%. This rarity makes it economically viable for battery production. This study assesses the feasibility of sourcing lithium from these domestic resources or through strategic imports. Other critical raw materials like cobalt and nickel was also be analyzed in terms of availability and procurement strategies.
Financial Analysis:
A comprehensive financial analysis was conducted to assess the project's viability. This includes capital expenditure estimates, operational cost projections, and potential revenue streams. The study evaluated the project's profitability, payback period, and internal rate of return.
Risks and Mitigation Strategies:
The study identified potential risks associated with the project, such as fluctuations in raw material prices, technological advancements by competitors, and effects by government policies. Mitigation strategies was proposed to address these risks to ensure the project's long-term success.

This feasibility study presents a comprehensive assessment of the potential for establishing lithium battery production in Nigeria. It provides valuable insights for investors, policymakers, and potential entrepreneurs to make informed decisions regarding this strategic opportunity.