Zimbabwe holds the distinction of being Africa’s leading lithium producer, boasting substantial untapped reserves.
This potential is increasingly attracting investors, especially as the long-term outlook for lithium, a crucial component in electric vehicles, remains positive.
Cluff Africa Secures Stake in Sandawana Project
Cluff Africa, led by British businessman Algy Cluff, has recently signed an agreement with Zimbabwe’s sovereign wealth fund, Mutapa Investment Fund.
This agreement grants Cluff Africa a 45% stake in the Sandawana lithium project, making it the latest investor to recognize Zimbabwe’s lithium potential.
While the financial details of the deal remain undisclosed, reports indicate that Cluff Africa plans to initiate a drilling program immediately following the agreement.
Previous work by the national mining company, Kuvimba Resources, has already identified a mineral resource of 38 million tons containing lithium.
World-Class Lithium Resource Development
Algy Cluff, CEO of Cluff Africa, expressed enthusiasm about the project, stating, “We have reached this critical milestone, and now we can begin to develop what we believe to be a world-class high-grade lithium resource, alongside our partner Mutapa.”
Cluff Africa stands out as one of the few non-Chinese players investing in Zimbabwe’s lithium mining sector. Earlier this month, a company controlled by Nigerian businessman Benedict Peters announced its intention to commence lithium production in 2025.
Chinese Dominance in Zimbabwe’s Lithium Sector
Over the past three years, Chinese investors have been the most prominent in Zimbabwe’s lithium industry, investing over a billion dollars in project acquisitions, some of which are already operational.
These investments are strengthening China’s control over the lithium supply chain. By 2025, China is expected to control over 30% of global lithium production, up from 24% two years ago, according to an estimate by UBS AG.
Optimistic Long-Term Outlook Despite Price Fluctuations
Lithium prices have experienced a significant decline in global markets in recent months, primarily due to slower growth in electric vehicle sales and an oversupply of batteries.
However, the long-term prospects for the lithium sector remain optimistic, driven by the increasing demand for electric vehicles and renewable energy technologies.