Chinese mining companies Zhejiang Huayou Cobalt Co. and Tsingshan Holding Group Co. are advancing the development of a lithium deposit in collaboration with a Zimbabwean state-owned enterprise, despite a significant drop in lithium prices.
The companies, already active in lithium projects within Zimbabwe, are conducting a feasibility study for the construction of a mine and processing plant at Sandawana in the southern region of the country.
This initiative was confirmed by the CEO of Kuvimba Mining House, the asset owner, who initially announced the partnership in July without disclosing the identities of the companies involved.
Over the past two years, Zimbabwe has emerged as a crucial player in the global lithium market, largely due to a price surge in 2021 and 2022.
This boom has attracted considerable interest and investment from Chinese firms eager to exploit the country’s abundant lithium resources.
Despite lithium spot prices plummeting by nearly 90% since late 2022, as supply outpaced demand for electric vehicles (EVs), Chinese companies are steadfast in securing feedstock for their domestic refineries.
Huayou and Tsingshan are set to invest between $250 million and $300 million into constructing their lithium mining and processing facility, which is anticipated to yield approximately 500,000 tons of lithium concentrate annually, according to Kuvimba’s acting CEO, Trevor Barnard.
Barnard is optimistic about a gradual increase in lithium prices over the next year, with a strong recovery forecasted for 2026 and 2027 as current production surpluses transition into deficits.
He expressed confidence in the project’s viability, stating, “Our economics show that we will still be a profitable business even at the current pricing levels.”
While active lithium mining and exploration projects are proliferating in various African nations such as Namibia, Mali, Ghana, and the Democratic Republic of the Congo (DRC), these initiatives remain relatively small compared to the extensive projects underway in the Americas, Australia, and Europe.
