What You Need to Know
Lithium prices have surged following Zimbabwe’s immediate ban on the export of lithium concentrates, a key component for electric vehicle batteries. This decision has raised concerns about global supply constraints, prompting a rise in stock prices for lithium producers across various regions, including China, Australia, and the United States.
Africa-Press. Lithium prices surged on Thursday, and shares of companies in the sector rose after Zimbabwe, one of the largest global producers, suspended exports of lithium concentrates. This move has heightened concerns about tightening global supplies of a key component in electric vehicle batteries and energy storage, according to a local source.
Lithium carbonate on the Guangzhou futures exchange rose by 5.4% to 177,000 yuan (approximately $25,856) per ton during trading today, while shares of lithium producers from China, Australia, and the Americas also increased.
Export Suspension
Zimbabwe suspended exports of all raw minerals and lithium concentrates effective immediately and until further notice, aiming to boost local processing and curb illegal shipments, according to a local source.
The export ban on lithium concentrates was initially set to take effect in January 2027, a deadline the government hoped would encourage mining companies to begin processing and refining the metal locally.
Minister of Mines Paul Kamboamara stated that the ban would remain in effect “until further notice,” explaining that export permits would only be granted to companies with valid mining licenses and approved processing capabilities.
Lithium prices have nearly doubled since November due to rising demand linked to the growth of energy storage projects. The price surge has also been fueled by uncertainty regarding supplies in one of China’s key production centers, bringing prices back to levels last seen in 2023.
In terms of stocks, Tianqi Lithium shares rose by 3.17% in Hong Kong by the end of trading today, while Ganfeng Lithium increased by 2.14%.
In Australia, shares of PLC Group rose by 8.25%, and Mineral Resources increased by about 4%.
In the United States, Sigma Lithium shares surged by 29.92%, while Albemarle rose by 4.84%.
Zimbabwe holds the largest lithium reserves in Africa, having exported 1.128 million metric tons of lithium concentrates (spodumene) in the year ending December 2025, an 11% increase from the previous year, according to a local source.
Most of the concentrates are exported to China for further processing and conversion into materials used in battery production. However, Zimbabwe is pressuring mining companies to process more minerals locally in an effort to gain greater benefits from the global shift towards cleaner energy sources, according to a local source.
Zimbabwe is one of the largest lithium producers globally, with significant reserves that have attracted international interest. The country has been working to enhance local processing capabilities to maximize the economic benefits from its mineral resources, especially as global demand for lithium continues to rise due to the transition to cleaner energy sources. The recent export ban is part of a broader strategy to ensure that more lithium is processed domestically, rather than exported in raw form.
