Chinese miners and refiners are significantly boosting lithium output in Africa, with the continent set to supply nearly 11% of global demand this year, up from close to zero at the beginning of the decade. This share is expected to rise to over 14% by 2028, according to S&P Global Commodity Insights.
The surge in African lithium production is driven by Chinese companies investing heavily in mining and refining operations across the continent. Although lithium prices soared through 2021 and 2022, they have since dropped more than 80% due to oversupply and slower-than-expected sales of electric vehicles. Despite this, China continues to expand its refining capacity and relies increasingly on imported materials.
More than two-thirds of Africa’s lithium comes from Zimbabwe, where Chinese firms like Zhejiang Huayou Cobalt Co., Sinomine Resources Group Co., and Chengxin Group Co. have invested billions in new mines and processing facilities. Additionally, Chinese-backed projects are underway in Mali, Namibia, and Nigeria.
As Africa develops 15 new or expanded mines by 2030, most are expected to be financially viable even at current prices, according to Lukasz Bednarski, S&P’s principal research analyst for lithium and battery metals. This growth in production will help address a predicted global lithium shortage after a peak surplus in 2027.
While Zimbabwe’s industrial mines provide transparent production data, supply from countries like Nigeria—where much of the lithium has been extracted with rudimentary tools—has been harder to track. Nigeria was the second-largest African source of lithium in recent years and recently opened its first lithium processing facility. The country is also developing additional projects with Chinese backing.
Western companies are also investing in African lithium. Atlantic Lithium Ltd. is establishing Ghana’s first lithium mine, supplying concentrate to the U.S. to benefit from new tax credits. Andrada Mining Ltd. and Tantalex Lithium Resources Corp. are advancing projects in Namibia and the Democratic Republic of Congo, respectively. British businessman Algy Cluff and Australian entrepreneur Hugh Morgan are also involved in lithium production in Zimbabwe and Nigeria.
While Australia, Chile, and China are projected to supply about 70% of the world’s lithium this year, Africa’s contribution will help reduce this dominance to just over half by the end of the decade. This shift reflects a broader trend towards diversifying global lithium production sources.
