The global lithium market is experiencing significant turbulence, with prices plummeting from around $70,000 per tonne in 2022 to an expected average of $14,500 per tonne in 2024. This drastic drop is causing widespread concern across major lithium-producing countries, including Australia and China, and has significant implications for Zimbabwe.
In response to the volatile market, Zimbabwe’s government had initially set a deadline for lithium miners to submit refining plans by March 2024 before allowing the export of the mineral. This deadline was extended at the miners’ request, but with the continued decline in prices and rising energy costs, miners are now seeking further leniency from the government.
David Matyanga, Mining Affairs Manager at the Chamber of Mines, said they have had to ask the government to ensure that it is not restricted, but they need to develop from concentrates.
The government’s preferred export product remains lithium carbonate, emphasizing the need for added value within the supply chain.
Zimbabwean authorities are keen on enhancing the value chain, particularly in light of growing investor interest in lithium. Despite the market challenges, the Chamber of Mines believes that the government will be supportive of measures to boost value addition.
For now, many miners are resorting to stockpiling their lithium output in anticipation of better market conditions. Matyanga noted, “This is exciting, and we hope that this month will also continue to increase.”
With no immediate signs of market recovery, the focus is now on how miners can remain viable amidst the ongoing turmoil.
