Resource-rich African nations are increasingly asserting control over critical minerals to maximise domestic returns, sending global prices soaring and exerting pressure on Chinese supply chains.
Zimbabwe’s mines minister Polite Kambamura revealed in a post-cabinet briefing on March 3 that following notice of the intended ban, the industry had increased production and export volumes.
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“There was also an increased appetite for lithium export permits, and the rationale behind it was to export as much product as possible before the notice period,” Kambamura said, explaining why the deadline was brought forward a year.
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What are rare earths, and why is China’s dominance facing global pushback
What are rare earths, and why is China’s dominance facing global pushback
This decision hits Chinese battery producers hard, having invested billions into local mines and relying on Zimbabwe for nearly 20 per cent of their total lithium concentrate supply. Following the ban, lithium carbonate prices on the Guangzhou Futures Exchange rose sharply to 178,020 yuan (US$25,800) per tonne by late February, up from 119,000 yuan in January. However, prices have since moderated as immediate supply concerns eased, trading at about 159,000 yuan per tonne as of March 13.
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