Zimbabwe Bets on Lithium Price Recovery to Justify $270M Project – Africa.com
Despite the recent fall in lithium prices, Zimbabwe’s Kuvimba Mining will finalize a $270 million lithium project deal with two Chinese companies this month. The deal involves the construction of a lithium concentrator with an annual output of 600,000 tons in Sandawana, Zimbabwe. Kuvimba Mining CEO Trevor Barnard revealed that the decision was based on predictions that lithium prices will recover. Analysts expect prices to recover, driven by strong electric vehicle sales in China and the closure of some lithium mines. However, while prices are unlikely to return to the historic highs of 2022, the resource quality and scale of the Sandawana mine justify continuing the project. The lithium industry in Zimbabwe, Africa’s largest lithium producer, has attracted more than $1 billion in investment since 2021, mainly funded by Chinese companies, aiming to strengthen Beijing’s position as a leader in the global battery metals value chain.
source: Reuters
