Zimbabwe holds the distinction of being Africa’s foremost producer of lithium. While other nations like Mali and Ghana are actively working to establish their own mines, Zimbabwe continues to attract foreign investment for its reserves, even amidst a backdrop of declining prices for this strategic metal.
Major Investment in Lithium Concentrator
On July 18th, Zimbabwe’s state-owned Kuvimba Mining House announced a significant $310 million agreement for the construction of a lithium concentrator, with an estimated completion timeline of 18 months.
The project is backed by a consortium of British and Chinese investors, whose identities remain undisclosed.
Expanding National Production Capacity
With an anticipated annual production capacity of 600,000 tonnes of lithium concentrate, this project, to be developed at the Sandawana mine, is expected to substantially increase Zimbabwe’s national output.
As the leading lithium producer in Africa, the country has attracted over $1 billion in investments, primarily from China, in the exploitation of its substantial lithium reserves over the past three years.
Challenges in Local Lithium Processing
Despite this investment influx, Zimbabwe has seen limited progress in local lithium processing, despite the government’s ambition to manufacture lithium batteries domestically.
In May, the government indicated it had received plans from four companies operating in the country for concentrate processing, but no further details were provided.
Impact of Declining Lithium Prices
It’s worth noting that lithium prices have experienced a considerable decline over the past year, primarily due to global demand not rising as rapidly as supply.
This situation could have several ramifications for lithium projects across Africa, particularly regarding the revenue projections of numerous companies active on the continent. While Zimbabwe maintains its position as the leading African producer, other countries like Mali and Ghana are actively working to launch their own lithium mines.