Chinese companies Zhejiang Huayou Cobalt and Tsingshan Holding Group says they are proceeding with a new lithium project in partnership with state-owned Kuvimba Mining House, undeterred by a significant drop in global lithium prices. The two firms, both active in Zimbabwe’s lithium sector, are finalizing a comprehensive feasibility study on the Sandawana lithium deposit. Once completed, the project is set to involve a mine and processing plant with an estimated investment of US$250-$300 million.
Despite the current low lithium prices, down nearly 90% since late 2022, the companies remain confident in the long-term profitability of the project. Production is expected to yield 500,000 tonnes of lithium concentrate annually, with prices forecast to rebound by 2026.
Huayou and Tsingshan’s involvement in Zimbabwe highlights the country’s growing role as a global lithium supplier, accounting for 10% of mined supply in 2024. The investment also marks a continued Chinese interest in securing battery metal feedstock for domestic refineries.
The companies plan to hand over the project to Kuvimba after a minimum of five years, as part of a financing agreement.
