Kuvimba Mining House is set to finalize a deal this month with two Chinese companies to advance its $270 million lithium project. The deal focuses on developing the Sandawana lithium mine in Zimbabwe and hinges on the company’s confidence in a rebound of lithium prices, which have dropped by over 80% since their peak in November 2022 due to oversupply and sluggish electric vehicle (EV) sales. Analysts predict that robust EV sales in China and the suspension of certain mines will help stabilize prices this year.
Since 2021, Zimbabwe, the largest lithium producer in Africa, has attracted over $1 billion in lithium investments, largely from Chinese battery metal companies. Zhejiang Huayou Cobalt and Tsingshan, the two firms partnering with Kuvimba, have already established significant lithium and steel operations in the country. Huayou acquired Prospect Lithium in 2022, while Tsingshan operates the Dinson steel plant and Gwanda Lithium mine. These two companies will also partner to develop the Sandawana lithium project. Kuvimba expects to finalize the deal for a 600,000-ton-per-year lithium concentrator at Sandawana, confirming the project’s high-quality resources.
Apart from Zhejiang Huayou Cobalt and Tsingshan, Chinese companies such as Sinomine Resource Group, Chengxin Lithium Group, Yahua Group, and Canmax have acquired major lithium assets in Zimbabwe, aiming to dominate the global battery metal value chain. These projects align with China’s strategy to secure raw materials for its burgeoning EV industry. As part of the global value chain, the Sandawana project represents a significant step toward Zimbabwe’s economic diversification and sustainable development in the mining sector.
Read our latest news on batteriesdaily.
