Nigeria’s goal to establish a value-added supply chain for critical minerals, including lithium, is gaining momentum through an unexpected source: an e-marketplace startup.
Sabi, a Lagos-based B2B e-commerce company focused on the informal economy, has been quietly positioning itself as an intermediary for miners aiming to export. Recently, the company secured separate agreements with Italy’s Snowball Holdings and US-based Transition Resources, both of which plan to set up lithium processing plants in Nigeria within the next year.
Sabi will ensure these companies have a steady supply from small-scale lithium miners across Nigeria, according to CEO Anu Adasolum. It will also provide services such as quality control and logistics for exporting the refined mineral.
Each processing plant is expected to handle 500 tons daily, with potential scalability to 1,000 tons per day. The US will be the primary export market initially, with potential future expansion to Italy and Germany.
Sabi is also exploring mineral processing opportunities in Zambia for copper and Tanzania for nickel. These efforts align with a growing regional push to supply in-demand commodities, especially those critical for the global energy transition.
African nations are determined to avoid being relegated to raw materials suppliers in the clean energy transition. Critical minerals like lithium, cobalt, and copper, essential for rechargeable batteries, are key to this effort.
The International Energy Agency predicts that lithium demand will increase 13-fold by 2040 due to its use in cleantech. African governments view moving up the value chain as vital for economic growth and job creation. Experts suggest that basic in-country lithium processing could double export value.
Last year, Nigeria’s mines minister, Dele Alake, emphasized the country’s commitment to discouraging the export of raw minerals without added value. This year, Nigeria’s lithium sector has made progress, with two new processing plants opened in northern states, each built by different Chinese companies in partnership with the respective state governments.