Zimbabwe’s state-owned Kuvimba Mining House is expected to finalize a deal with two Chinese companies this month, continuing with its $270 million lithium project despite a downturn in lithium prices, its CEO, Trevor Barnard, confirmed on Monday.
Lithium prices have fallen over 80% since their peak in November 2022 due to oversupply and slower-than-expected electric vehicle (EV) sales growth.
However, analysts predict that strong EV sales in China and the shutdown of some lithium mines will stabilize prices this year.
Barnard expressed confidence that prices will recover more robustly next year, though he acknowledged they are unlikely to return to the record highs of 2022. “That was obviously a bubble driven by huge demand forecasts and positive sentiment around lithium,” Barnard explained.
Zimbabwe, Africa’s largest lithium producer, has attracted over $1 billion in investment for lithium projects since 2021, primarily from Chinese battery metal companies, according to company filings.
While Barnard did not specify the Chinese investors involved, he stated that Kuvimba is confident in finalizing their agreement to build a 600,000-ton-per-year lithium concentrator at the Sandawana mine.
Following a review, Barnard reaffirmed the project’s viability, citing the high quality and large scale of the resource.
Chinese companies such as Zhejiang Huayou Cobalt, Sinomine Resource Group, Chengxin Lithium Group, Yahua Group, and Canmax have already acquired significant lithium assets in Zimbabwe as China strengthens its position in the global battery metal value chain.
