Despite plummeting lithium prices, Zimbabwe’s state-run Kuvimba Mining House will press ahead with a $270-million- project in partnership with two unnamed Chinese firms, believing that global lithium demand will eventually rebound. Chief Executive Officer Trevor Barnard stated on Monday that the deal should be finalized by the end of this month, affirming confidence that lithium values will stabilize in 2024, though likely not returning to the record highs seen in 2022.
Lithium prices soared in response to burgeoning electric vehicle (EV) demand, particularly in China, only to fall over 80 percent from their peak due to oversupply and slower-than-anticipated EV sales. However, analysts anticipate an uptick in the market as certain mines suspend operations and Chinese EV purchases recover. Kuvimba’s optimism hinges on the size and quality of its Sandawana mine resource, which Barnard deems sufficient to justify continued investment.
Zimbabwe, Africa’s largest lithium producer, has attracted more than one billion dollars in investment since 2021, primarily from Chinese battery metal giants. Firms such as Zhejiang Huayou Cobalt, Sinomine Resource Group, Chengxin Lithium Group, Yahua Group, and Canmax have either launched or expanded their presence in the country, as China jockeys to strengthen its foothold in the global battery supply chain.
Barnard says Kuvimba’s upcoming project includes building a concentrator with a capacity of 600,000 metric tons per year, a move expected to boost exports and further entrench Zimbabwe’s role in meeting rising international demand for key battery components.