Zimbabwe has emerged as a key player in the global lithium market over the past two years, spurred by a surge in lithium prices during 2021 and 2022. Now, Chinese mining companies are moving ahead with a major lithium mining project in the country, despite recent price declines.
Chinese firms Zhejiang Huayou Cobalt Co. and Tsingshan Holding Group Co. have teamed up with a Zimbabwean state-owned company to develop a lithium deposit at Sandawana, located in the southern part of Zimbabwe. The companies are currently conducting a feasibility study for a mine and processing plant, according to Bloomberg. This partnership was confirmed by the CEO of Kuvimba Mining House, which owns the asset, following an announcement in July.
While lithium prices have dropped nearly 90% since late 2022 due to oversupply and weaker-than-expected demand for electric vehicles (EVs), Chinese companies remain committed to securing lithium feedstock for their domestic refineries. Zimbabwe’s rich lithium reserves continue to attract significant Chinese investment, solidifying its role in the global market.
Huayou and Tsingshan plan to invest between $250 million and $300 million in the Sandawana project, aiming to produce around 500,000 tons of lithium concentrate annually, according to Kuvimba’s acting CEO, Trevor Barnard. Despite the current low prices, Barnard is optimistic about the project’s profitability, expecting lithium prices to rebound over the next few years, with a strong recovery forecast for 2026 and 2027.
Barnard noted that the project remains viable even at current price levels, stating, “Our economics show that we will still be a profitable business even at the current pricing levels.”
Across Africa, lithium mining and exploration projects are on the rise, particularly in countries like Namibia, Mali, Ghana, and the Democratic Republic of the Congo (DRC). However, these ventures are still relatively small compared to larger projects in the Americas, Australia, and Europe.