Chinese mining companies Zhejiang Huayou Cobalt Co. and Tsingshan Holding Group Co. are advancing a lithium deposit project in collaboration with a Zimbabwean state-owned company, despite the recent significant drop in lithium prices.
Both companies are already engaged in lithium ventures in Zimbabwe and are now conducting a feasibility study for a future mine and processing plant at Sandawana, located in the southern region of the country.
This was confirmed by the CEO of Kuvimba Mining House, which owns the asset and had initially announced the deal in July without disclosing the partners involved.
Over the past two years, Zimbabwe has emerged as an important player in the global lithium market, following a sharp rise in prices in 2021 and 2022. This surge has drawn substantial interest and investment from Chinese firms eager to tap into the country’s abundant lithium reserves.
Despite lithium prices plummeting by nearly 90% since late 2022, due to a supply surge and weaker-than-expected demand for electric vehicles (EVs), Chinese companies remain committed to securing resources for their domestic refineries.
Huayou and Tsingshan are planning to invest between $250 million and $300 million in building the lithium mining and processing facility, which is projected to produce approximately 500,000 tons of lithium concentrate annually, as stated by Kuvimba’s acting CEO, Trevor Barnard.
Lithium mining and exploration projects are also expanding in other African countries like Namibia, Mali, Ghana, and the Democratic Republic of the Congo (DRC), although these efforts are still relatively small compared to the number of projects underway in the Americas, Australia, and Europe.
