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Zimbabwe prepares for lithium prices to justify $270 mln task with China

Zimbabwe's stateowned Kuvimba Mining House expects to finalise this month an offer agreed with two Chinese companies as it sticks with its $270. million lithium task on the basis lithium prices will. recover, its CEO said on Monday.

Experts expect robust sales of electrical cars (EV) in. China and the mothballing of some mines will this year stabilise. lithium prices. They have fallen by more than 80% given that their. November 2022 peak due to oversupply and slower than expected EV. sales growth.

CEO Trevor Barnard stated Kuvimba expects prices to recover. more highly next year, although they were not likely to reach. the record levels seen in 2022.

That was clearly a bubble driven by substantial need forecasts. and substantial positive belief around lithium, he said of the 2022. costs.

Zimbabwe, Africa's biggest manufacturer of lithium, has. brought in more than $1 billion of investment in lithium projects. because 2021, mainly from Chinese battery metal business, business. filings reveal.

Without calling the Chinese financiers, Barnard said he. anticipated them to finalise their deal with Kuwinma to construct a. 600,000 metric lots annually lithium concentrator at Sandawana. mine.

We did a review of the Sandawana task and we found that. it is still a great task to continue with due to the fact that of the. quality of the resource and the size of the resource too,. Barnard stated.

Zhejiang Huayou Cobalt, Sinomine Resource Group. , Chengxin Lithium Group, Yahua Group. and Canmax are a few of the Chinese companies. that have obtained lithium assets in Zimbabwe as the Asian. nation seeks to combine its position in the global battery. metal worth chain.

(source: Reuters)