Latest news with #ChengxinLithium
Bloomberg
2 days ago
- Business
- Bloomberg
China's Lithium Markets Gripped by Possible Supply Disruptions
Chinese markets for lithium, a key battery metal, are seeing heightened volatility after investors bid up prices to guard against possible supply disruptions. Lithium carbonate traded on the Guangzhou Futures Exchange rose by its daily limit of 8% on Friday, capping a 14% gain for the week. That prompted the bourse to issue a notice reining in speculative trades, which helped push futures limit down on Monday. Shares of producers have also jumped, with Tianqi Lithium Corp. and Chengxin Lithium Group Co. both rallying around 25% this month in Shenzhen.
AllAfrica
6 days ago
- Business
- AllAfrica
How can Zimbabwe profit from lithium if China is the processor?
Zimbabwe has the largest lithium reserves on the African continent. Lithium has been mined since the colonial period in the 1950s. It's a critical part of rechargeable lithium-ion batteries that are essential for the electric vehicle industry. Globally, the lithium-ion battery market is worth US$78.9 billion and is likely to amount to US$349.6 billion by 2034. In 2021, there was a new lithium rush in Zimbabwe because of increased global demand for the mineral. Today, most of Zimbabwe's lithium mines are owned by Chinese mining companies like Sinomine, Zhejiang Huayo Cobalt, Chengxin Lithium, Yahua and Canmax. Lithium-ion batteries aren't made in Zimbabwe. Instead, the country exports the mineral as a raw resource. Much of the value of Zimbabwe's lithium – 480,000 metric tonnes mined since 2015 – is reaped by companies in China which make the raw lithium into batteries and other goods. During the lithium rush, artisanal miners were involved in the lithium industry. They mined and sold raw ore. But their participation has recently slowed down because artisanal lithium mining is largely illegal. For this reason, official data reports haven't been able to record how much lithium has been mined this way. In 2022, the Zimbabwean government banned the export of raw lithium ore in an attempt to regulate the industry and curb artisanal lithium mining and illicit exports. However, it was still permitted to export lithium concentrate (a powdered version of the raw mineral). But the government recently decided to ban the export of lithium concentrate from January 2027. It says the ban will improve the country's efforts towards building facilities that add value to lithium, such as lithium refineries and battery production plants. If properly implemented and regulated, the new ban on exporting lithium concentrate could increase Zimbabwe's self-sufficiency in lithium processing. It could even help the country achieve the middle-income economy it has set out in its Vision 2030, in which it aims to have a mining industry that generates US$12 billion a year in revenue. Zimbabwe has the world's second largest reserves of platinum and huge supplies of chrome. Making goods locally from lithium would expand the mineral export revenue in addition to platinum and chrome. However, becoming a middle-income nation is currently hampered by mining revenue leaking away through losses from smuggling, tax evasion and other causes. Also, environmental justice groups estimate that raw lithium weighing about 3,000 metric tons leaves the country daily. Between now and the time the 2027 ban on exporting lithium concentrate comes into effect, about 1.6 million additional tonnes of raw lithium could have been extracted and sent overseas. This means the government should not wait for 2027, but should implement the ban on lithium concentrate exports now. The ban also doesn't seem to be aimed at uplifting the livelihoods of communities who live near lithium mines. I describe these communities as living in sacrifice zones: they bear the brunt of lithium mining pollution and land grabs for mines. These vulnerable groups include women, children and artisanal lithium miners who have been disempowered by the just transition. To use its lithium reserves to uplift the country, the government of Zimbabwe needs to establish local plans that place community development and improved livelihood of mining communities at the center of mining. This could be done through pro-poor development policies that will create employment opportunities for local people in lithium mining frontiers. It could also include compelling mines to purchase locally made goods and fresh produce. Bringing artisanal miners into local value chains in gold, diamond and chrome mining would also help these informal miners become part of the formal mining economy. Zimbabwe is one of the 10 biggest global lithium exporters. (Chile, Argentina and Australia are others.) In the first nine months of 2023 alone, it is estimated that about US$209 million worth of Zimbabwean lithium was sold. The potential of lithium to stimulate economic development and attract international investments is unquestionable. The problem over the last few years, however, seems to be that the market isn't regulated enough. Lithium mining has not created many jobs, and for the few who are employed, there've been gross human rights abuses, wage cuts and a lack of investment in road infrastructure. The politics of lithium mining are also shaped by networks of political elites. They are known as the lithium barons: people who engage in corrupt deals and smuggling. Another problem has been the misplaced focus on artisanal miners. For example, the 2022 lithium ban mainly targeted artisanal lithium miners who were on the margins of the industry. It did not affect large-scale mining companies to the same extent. When the lithium ban was introduced, the market for processed lithium expanded and the demand for unprocessed lithium drastically shrank. This left artisanal miners with raw lithium and a shrinking market price. Between now and 2027, lithium mining companies in Zimbabwe will try to extract as much lithium as possible before the ban comes into effect. This could deplete the lithium reserves in the country. Mining investors might look elsewhere. The Zimbabwean government should take these steps to solve the problem: The Zimbabwe government must ensure total monopoly of its lithium reserves. The over-reliance on Chinese investments in the lithium industry has set a bad precedent for what might happen with other minerals in the future. It will take time for the government to undo this and set up its own monopoly. This resource sovereignty will be vital. The government must consider how to govern minerals in a people-centered way. So far, lithium has not benefited ordinary Zimbabweans. The resource communities where extraction deals are taking place must be consulted and brought into the conversation about how Zimbabwe can benefit from its lithium reserves. Communities in Zimbabwe like Buhera, Bikita, Mberengwa and Goromonzi have endured years of lithium mining pollution. This includes their freshwater sources being contaminated by mines, toxic dust from blasting, mineworkers being exposed to hazardous and unsafe working conditions, displacement and – above all – gross human rights abuses from multinational lithium mining companies. The ban on the exports of lithium concentrates is crucial for stimulating local beneficiation and value addition. The government should implement this ban immediately rather than waiting for the 2027 timeline. Jabulani Shaba is a postdoctoral researcher at the University of Groningen who researches resource extraction and environmental change caused by mining in southern Africa. This article is republished from The Conversation under a Creative Commons license. Read the original article.
Yahoo
22-07-2025
- Business
- Yahoo
Zimbabwe lithium exports soar 30% in H1 2025, defying price slump
Zimbabwe has reported a 30% surge in spodumene concentrate exports in the first half of 2025, despite a significant drop in global lithium prices, reported Reuters, based on statistics from the Minerals Marketing Corporation of Zimbabwe (MMCZ). The country, Africa's leading lithium producer, exported 586,197 tonnes (t) of the lithium-bearing mineral between January and June, compared to 451,824t during the same period in the previous year. Prices of lithium, a critical component of renewable energy technology batteries, have plummeted by nearly 90% over the past two years, primarily due to oversupply. However, producers remain optimistic about the long-term prospects of the metal, given the global shift towards cleaner energy and electric vehicles. MMCZ said: "A notable market contradiction was observed in the lithium sector, where prices declined despite a continuous rise in demand for lithium metal." The prices are expected to improve in the medium term. Chinese companies such as Zhejiang Huayou Cobalt, Sinomine, Chengxin Lithium Group, Yahua Group and Tsingshan hold a dominant position in Zimbabwe's lithium mining industry. These companies have collectively invested more than $1.4bn (10.05bn yuan) since 2021 to acquire and develop lithium assets in the country, as per MMCZ. Last month, Reuters reported that Zimbabwe plans to ban the export of lithium concentrates, starting from 2027, to encourage local processing. Huayou, which exported 400,000t of lithium concentrate from Zimbabwe in 2024, has commenced the construction of a lithium sulphate plant within the country, with an annual capacity of 50,000t. Similarly, Sinomine has revealed its intention to construct a $500m lithium sulphate plant at its Bikita mine in Zimbabwe. Lithium sulphate is an essential intermediate product that can be refined into battery-grade materials such as lithium hydroxide or lithium carbonate, which are crucial in battery manufacturing. "Zimbabwe lithium exports soar 30% in H1 2025, defying price slump" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
21-07-2025
- Business
- Reuters
Zimbabwe's spodumene exports surge 30% despite weak lithium prices
HARARE, July 21 (Reuters) - Zimbabwe's exports of spodumene concentrate, a lithium-bearing mineral essential for battery production, surged 30% in the first half of 2025 despite weak global lithium prices, official statistics show. Africa's top lithium producer exported 586,197 metric tons of spodumene concentrate between January and June, compared to 451,824 metric tons during the same period last year, according to statistics from the Minerals Marketing Corporation of Zimbabwe (MMCZ) obtained by Reuters on Monday. Prices of lithium - used in batteries to power renewable energy technologies - have tumbled nearly 90% over the past two years, mainly due to oversupply, but producers remain positive about the metal's long-term prospects amid a global push towards cleaner energy sources and electric vehicles. "A notable market contradiction was observed in the lithium sector, where prices declined despite a continuous rise in demand for lithium metal," Zimbabwe's state minerals marketer MMCZ said in a statement. "Lithium prices are, however, expected to improve in the medium-term," it added. China's Zhejiang Huayou Cobalt ( opens new tab, Sinomine ( opens new tab, Chengxin Lithium Group ( opens new tab, Yahua Group ( opens new tab and Tsingshan dominate Zimbabwe's lithium mining, producing concentrates and shipping them to their home country. These companies have invested in excess of $1.4 billion since 2021 to acquire and develop the lithium assets, according to the MMCZ. The southern African country says it will ban the export of lithium concentrates from 2027 to promote more local processing. Huayou, which exported 400,000 tons of lithium concentrate from Zimbabwe in 2024, says it has started building a 50,000-ton per year lithium sulphate plant in the country. Sinomine has also announced plans to build a $500 million lithium sulphate plant at its Bikita mine in Zimbabwe. Lithium sulphate is an intermediate product which can be refined into a battery-grade material such as lithium hydroxide or lithium carbonate used in battery manufacturing.
Bloomberg
15-07-2025
- Business
- Bloomberg
China's Lithium Giants Tumble After First-Half Profit Warnings
Shares in China's lithium producers fell sharply on Tuesday after two of the largest miners warned that battery-metal woes had weighed on earnings for the first half of the year. Tianqi Lithium Corp. forecast a negligible net income of up to 155 million yuan ($21.6 million) for the first six months, while Ganfeng Lithium Group Co. predicted a net loss of 300 million yuan to 550 million yuan for the same period. Chengxin Lithium Group Co. said its net loss could be as high as 850 million yuan.
