There are strong indications that United States President, Donald Trump, may be setting his sights on Nigeria’s burgeoning lithium industry, a sector increasingly recognised as a cornerstone of the global energy transition.
Despite his historically indifferent stance on trade with Africa, Trump’s potential interest in Nigeria’s lithium reserves suggests a strategic recalibration driven by the surging global demand for critical minerals. Lithium, a key component in electric vehicle batteries, renewable energy storage and advanced technology, has become a geopolitical asset, with major economies scrambling to secure stable supply chains.
However, recent executive orders signed by Trump have notably excluded Africa from his list of trade priorities, raising questions about the seriousness of any prospective engagement. While China continues to dominate the global lithium market, the U.S. has been seeking alternative sources to reduce dependency, and Nigeria, home to some of the world’s richest lithium deposits, presents an attractive prospect.
Renowned political economist, Professor Carl LeVan, equally expressed worry over the omission of the Africa Growth and Opportunity Act, AGOA in Trump’s “America First” agenda.
The don stated this while speaking at the latest edition of the Toyin Falola Interviews on Monday.
LeVan, who chaired Politics, Governance, and Economics at the American University in Washington, DC, highlighted the potentially dire consequences of sidelining Africa in U.S. trade strategy.
He emphasised that AGOA remains a cornerstone of Africa-U.S. economic relations.
LeVan also highlighted a troubling trend in the U.S-Africa trade relations under Trump’s leadership, citing a decline in trade volume from $9.2 billion during the Biden administration to $6 billion in Trump’s first term.
He also expressed concern over the rescission of Biden’s Advisory Council on the African Diaspora.
The don maintained that Africa has increasingly looked to diversify its trade partnerships, particularly with China, as the U.S. appears less engaged.
But, the Director, Commonwealth Institute of Advanced and Professional Studies, Prof. Folorunsho Kila, was upbeat that Trump would want to relate more with countries that could supply him lithium.
Nigeria, he said, may be the preferred bride to the United States, especially as it concerns the lithium industry.
Kila, while featuring on Arise TV, Tuesday, argued that the lack of interest in trade relations with Africa by Trump will spur Africa to begin to develop its talent, especially in the technology space.
“You cannot predict Trump in terms of relationship. But I am sure he will move closer with leaders and countries that could bring something beneficial to the table’’.
Kila said while it may be correct that Trump may not be interested in promoting trade relations with Africa, countries that have what it could bring to the table would be attracted to the US.
The interest of Trump in Nigeria’s lithium industry may not be unconnected with electric car industry as lithium is a major raw material batteries needed for electric cars.
Lithium, essential for the global energy transition, has become vital for accelerating clean energy technologies, especially in lithium-ion batteries.
According to a report by Energy and Utilities, a part of the Informa Markets Division of Informa Plc, Nigeria’s lithium-bearing ores, mainly lepidolite and spodumene, are found in the Pan-African Basement Complex.
Though lithium mining has been minimal, exploration surveys have identified significant deposits in Kwara, Ekiti, Ogun, Nasarawa, and Plateau states. As global demand for lithium grows, Nigeria’s deposits will become increasingly valuable.
The report added that to avoid past mistakes in the oil and gas sector, the Nigerian government is adopting a “value addition” policy for lithium mining, tying mining approvals to investments in midstream and downstream segments like refining, processing, and battery production.