Lithium Prices Jump After Zimbabwe Suspends Concentrate Exports

Zimbabwe has imposed an immediate ban on exports of all raw minerals and lithium concentrates, citing widespread malpractices and leakages in the country’s export systems, a move that has already sent shockwaves through global lithium markets.

In a statement issued on Wednesday, the Ministry of Mines and Mining Development said the suspension applies to all minerals, including consignments already in transit, and will remain in holding until further notice.

Authorities said the decision was taken in the national interest as the government reviews export procedures.

“Government expects cooperation of the mining industry on this measure,” the ministry said, adding that Zimbabwe remains committed to in-country value addition, beneficiation, compliance and accountability in the export of its mineral resources.

The dramatic policy shift accelerates previous plans to restrict lithium concentrate exports by 2027 as part of a broader push for domestic mineral processing.

Zimbabwe is Africa’s largest lithium producer and one of the fastest-growing suppliers globally.

According to official data, Zimbabwe exported 1.128 million metric tonnes of lithium-bearing spodumene concentrate in the year ended December 2025, an 11 per cent increase from the previous year.

Most of the output is shipped to China for processing into battery-grade materials used in electric vehicles and energy storage systems.

In a letter dated February 17 and addressed to the Zimbabwe Chamber of Mines, the ministry said it was realigning export processes due to “continued malpractices during the exportation of minerals.” The review, it said, aims to curb leakages and improve efficiency.

The announcement sent shockwaves through global lithium markets, with Chinese prices surging more than 9 per cent in early trading on Thursday before settling 6.07 per cent higher at 178,020 yuan ($26,043) per metric ton on the Guangzhou Futures Exchange.

Zimbabwe accounts for about 10 per cent of global mined lithium supply, and around 19 per cent of China’s imported lithium concentrate last year came from the southern African nation, analysts say.

The sudden halt has therefore raised fears of short-term tightening in the global supply chain, particularly as demand for energy storage systems continues to rise.

The country’s lithium boom has been driven largely by investment from Chinese mining companies, including Zhejiang Huayou Cobalt, Sinomine Resource Group, Chengxin Lithium Group and Yahua.

These firms have rapidly expanded spodumene output in recent years, transforming Zimbabwe into a key supplier of battery minerals.

While most exports have been in concentrate form, some miners have already begun investing in local processing capacity in response to government pressure.

Huayou has built a $400 million plant in Zimbabwe to process lithium concentrate into lithium sulphate, an intermediate product used to make battery-grade lithium hydroxide or carbonate.

Sinomine has also announced plans for a $500 million lithium sulphate plant at its Bikita mine.

Analysts say the export ban is likely to intensify pressure on remaining producers to accelerate downstream investments.

Cameron Hughes, an analyst at CRU Group, told Bloomberg that rising lithium prices and continued illegal shipments were likely behind the timing of the move, comparing it to similar resource control measures taken by the Democratic Republic of Congo on cobalt.

Mining is a cornerstone of Zimbabwe’s economy, accounting for approximately 14.3 per cent of the country’s gross domestic product, according to World Bank data, making it the second-largest contributor after manufacturing.

The government has increasingly imposed tighter controls on mineral exports as a way to capture more value locally and strengthen fiscal revenues.

The government has not specified a timeline for lifting the suspension, stating only that the ban remains in effect until further notice while export systems undergo review.

The move places Zimbabwe among a growing list of resource-rich countries seeking to exert greater control over strategic minerals as global competition intensifies around inputs critical to clean energy, electric vehicles and advanced manufacturing.

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