Chariot Resources Limited has executed a non-binding memorandum of understanding (MOU) with Shanghai GreatPower Nickel & Cobalt Materials Co. Ltd., a prominent China-based battery materials producer, to explore collaboration across its prospective Nigerian lithium portfolio.
The MOU outlines potential offtake for up to 200,000 tonnes per annum of spodumene concentrate – the principal ore of lithium - from one of Chariot's four Nigerian projects and included options for development financing, credit lines, and offtake prepayments to accelerate exploration and production.
The parties will also evaluate the possibility of building a lithium processing facility in Nigeria to upgrade run-of-mine ore into concentrate onsite, potentially incorporating sustainable practices such as electric mining equipment and solar-plus-storage microgrids for site power.
Shanghai GreatPower operates multiple facilities in China producing battery-grade materials including lithium carbonate, bringing significant technical and supply chain expertise to the partnership. The company’s major customers include LG Energy Solution, a battery company headquartered in Seoul, South Korea which holds a 4.02 per cent stake in GreatPower.
Other Shanghai GreatPower customers include Contemporary Amperex Technology Co. (CATL), the world's leading Chinese manufacturer of lithium-ion batteries for electric vehicles (EVs) and energy storage systems (ESS), alongside BMW and Samsung.
Key offtake terms contained in the MOU contemplate initial direct shipping ore (DSO) deliveries to a collection point at Sagamu, Nigeria, transitioning to long-term priority supply of spodumene concentrate, priced against international benchmarks for 5.5–6.0 per cent lithium oxide.
Chariot Resources executive chairman and managing director Shanthar Pathmanathan said: “Chariot, alongside our Nigerian partner, Continental Lithium Limited, is pleased to be in discussions with Shanghai GreatPower, a world-class battery materials company. As the first publicly listed lithium company operating in Nigeria, Chariot holds a significant early-mover advantage in this emerging region.”
Any subsequent binding agreements remain subject to further negotiation, due diligence and – critically – completion of Chariot's acquisition of the Nigerian assets.
As updated in Chariot's 3 December 2025 ASX announcement, the company has executed a variation to its share sale agreement with Continental Lithium Limited, strengthening exclusivity protections, refining conditions precedent - including full license transfers to the duo’s joint venture entity C&C Minerals - and extending the end date to 5 May 2026.
Chariot has advanced US$379,195 (A$566,584) as a convertible loan to facilitate license transfers and closing costs, backed by Continental's guarantee. Completion is targeted for Q1 2026.
The MOU is non-exclusive initially but provides for a 90-day exclusivity period upon GreatPower selecting a priority project. It can be terminated on 30 days' notice or upon signing definitive agreements.
This strategic tie-up underscores Nigeria's emerging role in the global lithium supply chain, linking Chariot's high-grade, near-surface pegmatite projects at the Fonlo, Iganna, Saki, and Gbugbu prospects with downstream Chinese EV battery demand.
While non-binding and contingent on finalising the property acquisitions, the partnership could provide vital funding and offtake security to fast-track development.
Chariot continues to advance its dual-track strategy in Nigeria which revolves around pursuing early small-scale mining revenues while progressively ramping-up towards larger-scale production, complemented by its core lithium assets in the US.
With the acquisition progressing and the new MOU adding momentum, 2026 is already shaping up as a pivotal year for Chariot’s African lithium ambitions.
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By Doug Bright
