Africa’s Largest Economy Poised to Enter Booming Global Lithium Market

Thor Explorations Ltd has unveiled promising preliminary results from its initial drilling efforts in pursuit of lithium in Nigeria as it looks to tap into the $37 billion lithium market.

Thor Explorations, a Canadian mineral exploration company operating in Nigeria, Senegal, and Burkina Faso, recently reported “significant” findings of mineralized pegmatites in its initial drilling campaign.

Segun Lawson, the President and CEO of the company, expressed strong optimism about the results, emphasizing the confirmation of lithium-bearing minerals within pegmatite bodies in the West Oyo Project Area.

“The initial drilling program on one of our prospects in the West Oyo Project Area was designed to confirm and delineate lithium-bearing mineralization, such as spodumene and lepidolite, at depth,” Lawson noted.

He further revealed plans to extend drilling across other lithium-bearing pegmatites within the company’s portfolio in Oyo State.

Thor Explorations holds a 100 percent interest in the Segilola Gold Project located in Osun State, Nigeria. The company has secured over 600 square kilometers of granted tenure in Nigeria, spanning Oyo State, Kwara State, and Ekiti State Lithium Project Areas.

Significantly, the Oyo State Lithium Project holds a vast exploration tenure of approximately 38 square kilometers, positioned near Nigeria’s western border and within 200 kilometers of Lagos, the commercial capital.

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The global lithium market, which was valued at $37.8 billion in 2022, is projected to reach $89.9 billion by 2030 with a compound annual growth rate of 22.1 percent.

This surge is primarily driven by the increasing demand for rechargeable batteries in electric vehicles, laptops, mobile phones, and more.

The booming electric vehicle market is a primary catalyst for lithium demand. Tesla’s projections indicate a substantial requirement for lithium carbonate equivalent, signaling the rising importance of lithium-based batteries for the electric vehicle industry.

Nigeria’s untapped lithium potential and favorable geological settings are key factors that could propel the nation’s entry into the lithium market.

Presently, small-scale artisanal mining of lithium-bearing minerals takes place, but prospects for larger-scale mining, particularly in Kaduna, appear promising.

Nigeria’s economy, one of Africa’s largest, holds the potential to add value to the lithium supply chain, significantly reducing the country’s dependency on petroleum production.

However, addressing challenges like illegal mining, poor government policies, and insecurity is imperative for sustainable growth in the sector.

Thor Explorations’ proactive exploration approach, coupled with Nigeria’s ambitious drive to diversify its resources, signals a new chapter in the country’s economic landscape.

As Thor’s exploration efforts progress and global lithium demand surges, Nigeria stands poised to leverage its untapped lithium potential, potentially transforming its economic trajectory.