Zimbabwe Moves Ahead with $270 Million Lithium Project

Zimbabwe’s Kuvimba Mining House is finalizing a $270 million deal with two Chinese companies this month for a major lithium project. The state-owned company is optimistic that lithium prices, which have fallen sharply since 2022, will recover in the coming months.

Trevor Barnard, CEO of Kuvimba, said that despite lithium prices dropping by more than 80% from their peak in November 2022 due to oversupply and slower electric vehicle (EV) sales, the market is expected to stabilize. Analysts predict that strong EV sales in China and the closure of some lithium mines will help restore price levels in 2024.

Barnard acknowledged that while lithium prices are unlikely to reach the highs seen in 2022, they are expected to recover. He described the 2022 surge as a “bubble” driven by inflated demand forecasts and optimistic market sentiment.

Since 2021, Zimbabwe has attracted more than $1 billion in investment for lithium projects, primarily from Chinese battery metal companies. Barnard said Kuvimba is moving forward with a lithium concentrator at Sandawana mine, which will process 600,000 metric tons of lithium per year. He noted that the project remains a good investment due to the quality and size of the resource.