Zimbabwe is urging miners to submit proposals for the production of battery-grade lithium by the end of March, signaling its commitment to benefit from the global transition towards electric vehicles and clean energy storage, despite a significant drop in lithium prices worldwide.
As Africa’s leading lithium producer, Zimbabwe set a deadline in November for miners to outline plans for local production of battery-grade lithium, essential for electric vehicles and renewable energy storage systems.
Currently, Chinese miners dominate Zimbabwe’s lithium sector, exporting concentrates to China for further processing.
However, with global lithium supply exceeding demand from the battery market, prices have plummeted by over 80%, prompting layoffs and production cutbacks in many firms.
In response to the challenging market conditions, Albemarle, the world’s top lithium miner, announced workforce layoffs and expansion halts in January. Similarly, Piedmont Lithium, a US-based miner, reduced its workforce by 27% in February.
Despite the price challenges faced by lithium producers in Zimbabwe, Deputy Mines Minister Polite Kambamura emphasized the government’s stance on beneficiation, urging miners to present concrete plans for processing capacity development.
Kambamura clarified that while the government expects miners to submit plans by March, it does not require immediate establishment of processing plants. Instead, it seeks detailed proposals outlining future beneficiation strategies.
One of the prominent players, Zhejiang Huayou Cobalt, expressed willingness to explore local production of battery-grade lithium under favorable construction and economic conditions.
However, Huayou highlighted challenges in Zimbabwe, including the lack of essential resources such as reliable renewable energy, natural gas, and sulphuric acid required for lithium production.
Zimbabwe’s vast hard-rock lithium reserves, among the world’s largest, have attracted substantial investment, exceeding $1 billion, primarily from Chinese mining companies like Zhejiang Huayou Cobalt, Sinomine Resource Group, Chengxin Lithium Group, Yahua Group, and Canmax Technologies.
