British Mining Company Initiates Arbitration Against Nigeria Over Lithium Project
A British mining company has taken formal steps to pursue international arbitration against the Nigerian government, claiming that authorities revoked its license and obstructed the development of a multibillion-dollar lithium project that holds significant strategic value for the UK.
Jupiter Lithium Limited, a UK-based firm, has submitted an application for arbitration to the International Center for Settlement of Investment Disputes (ICSID), which operates in Washington, D.C., Paris, and Singapore.
For several years, Jupiter has been exploring a prominent hard-rock lithium deposit in central Nigeria, asserting that this resource could meet the UK’s lithium demands for decades. This positions the company as a critical player in the burgeoning battery and electric vehicle supply chain within the UK.
However, Jupiter claims that the Nigerian Federal Government has unlawfully interfered with its operations, including the cancellation of 70 percent of its mining leases and failing to grant additional leases within the legally mandated timeframe under the Nigerian Mining Act. The law stipulates that the Minister of Solid Minerals must either grant or refuse mining titles within 45 days, yet Jupiter has reportedly been waiting for over two years.
According to Jupiter, tensions escalated in late 2025 when federal authorities removed personnel from its sites and allowed a Chinese-backed mining firm to initiate operations in the tenements, despite the absence of legal mining titles for the Chinese company. Efforts by Jupiter to engage in dialogue with President Bola Tinubu’s administration have largely been unsuccessful, with attempts to communicate through the Minister of Mines and the Director-General of the Mines Register falling flat.
At one point, Minister of Solid Minerals Dele Arake reportedly questioned whether an international tribunal would believe the foreign mining company’s claims, an indication of the government’s reluctance to pursue a negotiated resolution.
As a foreign investor, Jupiter is protected under the UK-Nigeria Bilateral Investment Treaty (BIT), which ensures that UK investors receive fair and equitable treatment, non-discrimination, and protection against expropriation. The company alleges multiple violations of this treaty and formally informed the Tinubu government in June 2025 of its intention to move forward with international arbitration if the government continues its interference and refuses to negotiate a settlement.
Despite Jupiter’s efforts to resolve the situation amicably, a company representative stated that they have been left with no choice but to seek arbitration to safeguard their investments and the rights afforded to them under the BIT.
The Nigerian government has yet to publicly address the ongoing conflict. However, officials have previously expressed a desire to bolster domestic control over strategically important minerals while fostering partnerships with new foreign investors, including those from China. This aligns with broader efforts to accelerate development in the mining sector.
The Jupiter Critical Minerals Project ranks among the largest lithium deposits worldwide, with projections indicating a production output of 167,000 tonnes of lithium concentrate within the first two years. This could yield Nigeria at least $6.2 billion during that period.
This situation arises at a pivotal moment for both the UK and the US as they seek to secure long-term supplies of lithium and other critical minerals vital for battery production. The UK currently does not have a commercial-scale lithium production facility and relies heavily on imports from countries such as Australia, Chile, and China.
The issue surrounding large British investments in strategic sectors is expected to attract the attention of British officials, especially as London aims to strengthen its supply chain resilience while enhancing economic ties with African nations.
Simultaneously, the United States has expressed concerns regarding China’s influence over the processing of critical minerals and rare earth elements essential for various technologies, including defense systems, smartphones, and electric vehicles.
Diplomatic sources suggest that this controversy may play a significant role in discussions surrounding President Tinubu’s efforts for re-election.
While Jupiter remains open to a negotiated resolution, it is preparing for arbitration and plans to pursue treaty-based measures to enforce its rights under the BIT should the current stalemate persist.
