China’s lithium prices soared Thursday after Zimbabwe abruptly suspended exports of raw minerals and lithium concentrates, sparking concerns over supply shortages at a time when global demand for batteries and energy storage systems is accelerating.
The most actively traded lithium carbonate contract on the Guangzhou Futures Exchange jumped 6.1% to 178,020 yuan ($26,043) per metric ton, after earlier climbing more than 9% to 187,700 yuan. Traders cited the Zimbabwean export ban as the key driver of the sudden volatility.
Zimbabwe, Africa’s largest lithium producer, announced Wednesday that all raw mineral and lithium concentrate exports were suspended with immediate effect. The country exported 1.128 million tons of spodumene concentrate in 2025, an 11% increase from the previous year, with the bulk shipped to China.
The move has raised alarm among battery makers and electric vehicle (EV) manufacturers, who rely on Zimbabwean lithium to meet growing energy storage needs. Analysts warn the suspension could tighten supply chains, increase production costs, and intensify price swings in an already buoyant market.
“China imports a large portion of its lithium from Zimbabwe, and this ban creates immediate uncertainty in the supply chain,” said Liu Wei, a commodities analyst at Shanghai Futures Exchange. “Battery manufacturers may have to look for alternative sources or pay higher prices for existing contracts.”
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Chinese companies such as Zhejiang Huayou Cobalt and Sinomine have heavily invested in Zimbabwe’s lithium sector, securing stakes in mining operations and supply contracts. Their investments have helped ensure a stable flow of spodumene concentrate into China, but the export freeze threatens to disrupt those arrangements.
Lithium prices have been on a strong upward trajectory since the second half of 2025, driven by surging demand for EVs, renewable energy storage systems, and industrial batteries. Global lithium consumption is projected to grow by 25–30% annually over the next five years, and any interruption in supply from Africa could amplify price pressures worldwide.
Zimbabwean authorities have not specified the duration of the export suspension or whether exemptions will be granted for domestic processing, leaving investors and trading firms uncertain about short-term market impacts.
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The ban highlights Africa’s increasingly central role in the global energy transition. Alongside lithium, the continent supplies other critical battery metals, including cobalt and nickel, which are essential for EV and grid storage technologies. Supply disruptions in these sectors can reverberate across international markets, underscoring the strategic importance of African mineral exports.
The government of Zimbabwe has cited the move as part of a strategy to encourage local beneficiation and ensure that mineral resources generate higher domestic value. By prioritizing in-country processing, authorities aim to capture more revenue from the global battery boom, though the immediate effect has been heightened uncertainty for global buyers.
Market observers say lithium prices are likely to remain elevated in the near term. Some traders are exploring shipments from Australia, Chile, and Argentina to offset potential shortages, but these alternatives may not match the volume and cost efficiency of Zimbabwean output.
The suspension also comes at a sensitive time for China, which is racing to expand its domestic battery manufacturing capacity and maintain leadership in the EV market. Any prolonged disruption in Zimbabwean lithium exports could slow production timelines, increase costs, and add pressure on companies racing to meet global energy storage demand.
As the lithium market reacts, investors are closely watching policy developments in Zimbabwe and the potential impact on other African mining nations, signaling the continent’s growing influence in global energy supply chains.
