Cabinet greenlights lithium mining to boost local battery manufacturing

Cabinet has approved support for lithium mining and local battery production in a push to lower the cost of solar-powered irrigation for Ugandan farmers.

The decision, taken on October 12, 2026, links investment in battery manufacturing to the government’s six-point irrigation strategy.

Minister of ICT and National Guidance Justine Kasule Lumumba said locally produced batteries would help reduce the cost of solar-powered water pumping and piping on farms and in gardens.

The government will support investors in lithium mining and battery production to speed up implementation of the strategy, she said.

The move builds on earlier efforts to turn Uganda’s mineral resources into finished products. 

In December 2023, President Yoweri Museveni backed a proposal by investors from London-based Strand Hanson Limited to mine lithium in Ntungamo District and manufacture electric vehicle batteries locally. He urged them to link extraction with processing and identified Kiira Motors as a potential customer. 

Government-backed researchers have also investigated lithium resources elsewhere. A Ministry of Finance monitoring report for the 2023/24 financial year recorded preliminary sampling and analysis of lithium sites in Mayuge and Buhweju districts under a battery development project. 

Uganda already has businesses assembling lithium battery packs. Soleil Power began operations at its purpose-built factory in Kirolo, Wakiso District, in July 2025. 

The company assembles imported cells into batteries for homes, businesses and electric motorcycles, according to an account published on its website. 

That reliance on imported cells shows the gap between assembling batteries locally and producing their core components from Ugandan minerals. Busitema University has pursued a Shs1.75 billion research project aimed at developing batteries using locally available materials. The university says minerals must undergo purification to meet battery manufacturing standards. 

Under Cabinet’s irrigation plan, the Ministry of Agriculture will work with the Ministry of Water and Environment to extend water supplies to farms and gardens.

In districts with reliable water sources, the government will invest in systems to transport water to agricultural land. Elsewhere, it plans to draw irrigation water from nearby seasonal streams and rivers.

The ministries will also rehabilitate small and large irrigation schemes and dams to improve their operation and restore water delivery to the farms they serve.

Cabinet further approved support for fish farming in Busoga, Bukedi, Greater Luwero, Lango, West Nile and the Kigezi lowlands.

Regional mechanisation centres will receive additional machinery. Farmers will access the equipment at affordable rates to construct farm dams and fish ponds.

Cabinet directed the Ministry of Finance to release funds for the strategy. Lumumba’s account did not specify the funding amount, the investors to receive support or when lithium extraction would begin.