According to Yicai Global, China’s leading battery materials supplier, Canmax Technologies, has announced an investment of over $200 million to establish a joint venture in Nigeria, developing two lithium mines. Despite the sharp decline in global lithium prices due to an oversupply, Canmax is accelerating its expansion to secure lithium resources, underscoring its long-term commitment to the new energy industry.
According to the announcement, Canmax has signed an agreement with the Kebbi State government in northwest Nigeria and local mining company Three Crown Mines to form a joint venture. Canmax will hold an 85% stake, while Three Crown Mines will retain the remaining shares.
Lithium Prices Plummet, Canmax Expands to Secure Supply Chain Stability
The lithium market has experienced significant volatility in recent years. The price of lithium carbonate peaked at $82,123 per ton in 2022, but has since dropped to below $10,949 per ton. Despite this downturn, Canmax remains committed to developing its core business and securing high-quality lithium resources worldwide.
Kebbi State is one of Nigeria’s key lithium mining regions. The project’s exploration phase is nearly complete, and initial drilling results indicate promising prospects. Under the agreement, Canmax will secure all production output from the joint venture, with pricing to be determined at a later stage.
Canmax: From ESD Control to a Global Battery Materials Giant
Founded in 1997, Canmax initially specialized in electrostatic discharge (ESD) control and cleanroom solutions. However, after partnering with CATL (Contemporary Amperex Technology Ltd.)—a key Tesla supplier—in 2018, its battery materials business has rapidly expanded, now accounting for over 90% of total revenue.
Despite the price challenges, Canmax reaffirmed in its mid-year report last year that it remains committed to global lithium resource investments, continuously seeking high-quality mining assets to ensure long-term raw material supply stability.
Nigerian Lithium Mining: The Next Focus in the Global Lithium Supply Chain
Nigeria is rich in lithium resources and has recently attracted increasing attention from international mining companies. Canmax’s investment not only strengthens China’s footprint in the global lithium supply chain but also creates new development opportunities for Nigeria’s mining sector.
Why is Nigerian lithium mining gaining attention?
- Abundant resources: Nigeria is one of Africa’s key lithium producers, with Kebbi State holding significant untapped reserves.
- Growing market demand: With the continued expansion of the global electric vehicle (EV) industry, lithium demand remains strong.
- China’s global expansion in new energy: Companies like Canmax, BYD, and CATL are aggressively expanding overseas to secure supply chain stability.
Conclusion: Canmax Expands to Nigeria, Intensifying Global Lithium Competition
Canmax’s $200 million investment in Nigerian lithium mining highlights its commitment to long-term industry development, even amid falling lithium prices. As global competition for lithium resources heats up, emerging mining countries like Nigeria are playing an increasingly crucial role in the electric vehicle battery supply chain. With the continued growth of the EV market, the race for lithium resources is far from over.
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