Chinese Miners Push Ahead with Zimbabwe Lithium Project

AFRICAN BUSINESS AND ECONOMYSeptember 24, 2024 at 5:54 PM UTC

TLDR

Chinese mining companies Huayou Cobalt and Tsingshan Holding Group partnering with state-owned Kuvimba Mining House for $250-$300 million lithium project in Zimbabwe.
Project located at Sandawana in southern Zimbabwe to produce 500,000 tons of lithium concentrate annually.
Despite a 90% decline in lithium prices, firms aim to secure lithium supply for their refineries in China.

Chinese mining companies Zhejiang Huayou Cobalt and Tsingshan Holding Group are moving forward with plans to develop a lithium deposit in Zimbabwe, defying the steep decline in lithium prices.

Partnering with the state-owned Kuvimba Mining House, the two firms will complete a study before constructing a mine and processing plant at Sandawana, located in southern Zimbabwe.

The project, estimated to cost $250-$300 million, aims to produce around 500,000 tons of lithium concentrate annually. Although lithium prices have plunged by nearly 90% since late 2022, Huayou and Tsingshan are focused on securing lithium supply for their refineries in China.

Key Takeaways

Despite the global downturn in lithium prices, Chinese firms continue to invest in Zimbabwe’s lithium sector, driven by long-term demand for battery materials. With Zimbabwe expected to account for 10% of the global lithium supply this year, the Sandawana project further solidifies the country’s growing role in the lithium market. The partnership between Huayou, Tsingshan, and Kuvimba underscores China’s strategic focus on securing key resources for its electric vehicle and battery industries. The feasibility study is expected within three months, and construction could be completed by the end of 2025.

Zimbabwe

China

Lithium

Mining

Business

Investments

FDI