Chinese Battery Giant Invests in Chariot Resources, Boosting Nigerian Lithium Hopes
In a significant development for the lithium market, Chariot Resources has attracted a major Chinese battery materials group to its share register, signaling a rapid recovery in the sector. The company has signed a binding agreement to issue 9.5 million shares at 15 cents per share, a slight premium to the current market price of 14.5 cents.
Strategic Investment Details
The deal, valued at $1.425 million, involves Jiangsu Greatpower NexEnergy Technology, an affiliate of Shanghai Greatpower Nickel and Cobalt Materials. In addition to the equity purchase, Greatpower will receive 19 million free-attaching unlisted options in Chariot, exercisable at 30 cents per share over two years. Completion is pending Chinese government approval, expected within five business days, with a long stop date of 15 April 2026.
This investment is just the beginning, as Chariot management confirms advanced discussions with Greatpower on project-level financing and offtake frameworks for its Nigerian lithium portfolio. These talks may include offtake prepayment funding for early small-scale mining and broader exploration support across the assets.
Executive Commentary and Strategic Alignment
Chariot Resources executive chairman Shanthar Pathmanathan expressed enthusiasm, stating, "We are delighted to welcome Greatpower onto our register and look forward to them increasing their stake as the relationship develops. We see this as a powerful alignment with a globally connected battery materials group."
The proposed framework could grant exclusive offtake rights for early production, options for Greatpower to fund exploration and development in Nigeria, and potential cooperation on electrified mining equipment.
Background on Chariot's Nigerian Lithium Portfolio
This new partnership aligns with Chariot's strategy initiated in mid-2025, when it agreed to acquire a 66.667% interest in a four-cluster hard-rock lithium portfolio in Nigeria through a joint venture entity, C&C Minerals, with local partner Continental Lithium.
Field work has yielded promising early results. Verification rock chip sampling at the Fonlo and Iganna projects in southwest Nigeria returned lithium oxide grades ranging from 2.66% to an impressive 6.59%, along with tantalum pentoxide and caesium traces. Chariot plans mineralogical and metallurgical testing to transition from artisanal workings to formalised small-scale mining.
Future Exploration and Acquisition Plans
Chariot has outlined an initial 2,000 to 4,000-metre diamond-drilling program at Fonlo and Iganna, set to commence after the Nigerian portfolio acquisition is finalised. Fonlo features a near-vertical dyke swarm with over six kilometres of strike, while Iganna is interpreted as shallow-dipping pegmatite sills that could offer significant scale if drilling confirms continuity.
The acquisition remains a key milestone. In December, Chariot revised the share sale agreement to tighten exclusivity and extend conditions precedent to 5 May 2026. The company also advanced US$379,195 to C&C Minerals via a convertible shareholder loan, backed by a corporate guarantee from Continental, to finance licence transfers and closing costs.
Market Implications and Outlook
Offtake-linked project funding is often viewed as a stabilizing force in the battery metals sector. If discussions with Greatpower lead to signed agreements, Chariot's small-scale mining pathway at projects like Fonlo, Iganna, Gbugbu, and Saki could shift from concept to concrete schedule.
With lithium prices on the rise, the timing of this partnership appears opportune for both Chariot and Greatpower. Drilling in areas with surface expressions of 5-6% lithium oxide promises exciting developments, making this a space to watch closely in the coming months.
