How Will Chariot’s New MOU Accelerate Nigerian Lithium Production?

Strategic Partnership in Lithium Supply Chain

Chariot Resources Ltd (ASX – CC9) has taken a significant step towards advancing its Nigerian lithium projects by signing a non-binding memorandum of understanding (MOU) with Fujian Jinjianqiao New Energy Technology Co., Ltd. The agreement outlines potential collaboration on offtake arrangements, financing mechanisms, and the development of local processing capacity, marking a strategic partnership that could reshape the supply chain from Nigeria to China.

Jinjianqiao, a China-based lithium trader with a robust Africa-to-China distribution network, sold approximately 90,000 tonnes of lithium concentrate and ore in 2025 and expects to double that volume in 2026. Their integrated services span import logistics, processing, testing, warehousing, and sales, positioning them as a comprehensive supply chain partner for Chariot.

Offtake and Financing Prospects

The MOU contemplates the potential sale and delivery of direct shipping ore (DSO) from one or more of Chariot’s Nigerian projects to a collection point in Sagamu, Nigeria. Upon satisfactory due diligence, Jinjianqiao may select one of Chariot’s four Nigerian lithium projects for long-term, exclusive priority offtake of spodumene concentrate or other lithium-bearing products. Pricing would be benchmarked against internationally recognised indices for material grading approximately 5.5–6.2% lithium oxide.

Beyond offtake, the parties have agreed to explore financing support options, including credit lines and offtake prepayment arrangements. Such funding could accelerate exploration and development activities, helping Chariot move swiftly towards commercial production. This financial collaboration is particularly notable given the capital-intensive nature of lithium project development.

Local Processing Ambitions

One of the more forward-looking aspects of the MOU is the joint evaluation of a lithium processing facility in Nigeria. The envisioned plant would upgrade run-of-mine ore into spodumene concentrate locally, potentially adding value within Nigeria and reducing reliance on raw ore exports. This aligns with broader industry trends favouring downstream processing closer to resource origins, which can enhance supply chain resilience and economic benefits for host countries.

However, the MOU is non-binding and contingent on Chariot completing its acquisition of the Nigerian lithium portfolio, expected in the first quarter of 2026. The Nigerian assets cover four project clusters, Fonlo, Gbugbu, Iganna, and Saki, spanning approximately 254 square kilometres and representing one of the largest lithium portfolios in the country.

Next Steps and Market Implications

Following the acquisition, Jinjianqiao will conduct detailed technical and commercial due diligence before any binding agreements are negotiated. If a project is selected for offtake, the parties intend to enter a 90-day exclusivity period to finalise definitive contracts. Meanwhile, Chariot remains free to engage with other potential partners, maintaining flexibility in its commercial strategy.

This MOU signals a potentially transformative phase for Chariot’s Nigerian lithium projects, leveraging Jinjianqiao’s established supply chain expertise and financial capacity. It also highlights the growing importance of China-Africa lithium trade links and the strategic value of developing local processing infrastructure in emerging lithium jurisdictions.