Zimbabwe’s Kuvimba Mining House is set to finalize a $270 million lithium project deal with two Chinese companies this month, despite recent lithium price declines. The deal involves building a 600,000 metric-ton-per-year lithium concentrator in Sandawana, Zimbabwe. Kuvimba Mining’s CEO, Trevor Barnard, revealed that the decision is based on projections that lithium prices will recover. Analysts have predicted a price recovery, driven by robust electric vehicle sales in China and the closure of some lithium mines. However, while prices are unlikely to return to 2022’s record highs, the quality and size of resources at the Sandawana mine justify proceeding with the project. Since 2021, Zimbabwe, Africa’s largest lithium producer, has attracted over $1 billion in investments in its lithium sector, primarily funded by Chinese companies aiming to strengthen Beijing’s position as the leader of the global battery metal value chain.
Source: Reuters