Chinese mining giants Zhejiang Huayou Cobalt Co. and Tsingshan Holding Group Co. are advancing their plans for a lithium deposit in Zimbabwe, partnering with the state-owned Kuvimba Mining House. This initiative continues even as lithium prices have sharply declined.
Both companies are currently conducting a feasibility study for the Sandawana project in southern Zimbabwe, where they intend to build a mine and processing plant. The CEO of Kuvimba Mining House confirmed the partnership, which was initially announced in July without naming the partners.
Over the past two years, Zimbabwe has emerged as a significant player in the global lithium market, particularly following the price surge in 2021 and 2022. This boom attracted substantial investment from Chinese firms eager to tap into the country’s abundant lithium resources.
Despite a nearly 90% drop in lithium spot prices since late 2022—driven by an oversupply and weaker demand for electric vehicles—Huayou and Tsingshan remain committed to securing lithium feedstock for their domestic operations. The companies plan to invest between $250 million and $300 million in their mining and processing facility, which is projected to produce around 500,000 tons of lithium concentrate annually. Kuvimba’s acting CEO, Trevor Barnard, anticipates a gradual recovery in lithium prices over the coming year, with a more significant rebound expected in 2026 and 2027 as current production surpluses turn into deficits.
Barnard expressed confidence in the project’s economic viability, stating, “Our economics show that we will still be a profitable business even at the current pricing levels.”
Across the continent, lithium mining and exploration projects are expanding in countries like Namibia, Mali, Ghana, and the Democratic Republic of the Congo (DRC). However, these efforts remain relatively small compared to the extensive projects being developed in the Americas, Australia and Europe.
