As global competition intensifies to secure lithium supplies for batteries, Africa is increasing its capacity for in-country lithium refining, with a surge in investments after several countries banned raw mineral exports.
After banning exports of raw lithium in response to growing demand from countries like China, several African countries rich in battery metal are experiencing a growth of in-country mineral processing activities.
Lithium primarily produces rechargeable batteries for electric vehicles (EVs) and mobile phones.
Lithium processing plants have been developing for nearly a year, especially in Zimbabwe, as foreign investors seek ways to access the material despite the export bans.
“With investment flowing across the country’s mining value chain, Zimbabwe is estimated to meet upwards of 20% of global demand if its full potential is unlocked,” said Energy, Capital and Power, the annual Critical Minerals Africa conference organisers.
The event’s Second edition is scheduled for 6th and 7th November 2024, as it seeks to advance its goal of establishing world-class minerals value chains in Africa.
“This is the African critical minerals deal-making space, standing at the intersection of energy and mining, linking global consumers and producers, and bringing global capital to African projects,” said the event organisers on their website.
The event happening in Cape Town has a dedicated ’Minerals Showcase: Lithium session’ that will explore the continent’s future role in the energy transition as a major producer of the critical mineral.
Among the latest developments is the signing of a US$310-million deal between Zimbabwe’s state-owned mining company Kivumba Mining House and a consortium of British and Chinese investors to construct a 3 million ton per year lithium processing plant at the Sandawana mine in Mberengwa.
The facility, being developed under a build, operate and transfer agreement, is expected to be operational within 18 months and will initially produce 600,000 tons of lithium concentrate annually.
In April 2024, another Chinese mining company, Rwizi Rukuru, commissioned the country’s third lithium processing plant, a 300-ton-per-day lithium concentrator located in Mutoko, in the country’s Mashonaland East province.
Premier Africa Minerals, a UK-based mining and exploration company, has significantly boosted investment flows to Africa’s critical mineral sector through local capital fundraising.
In April 2024, the company announced plans to inject US$2.5 million to fast-track the commissioning of lithium mines in the country, including one at the Zulu project, 80km from Bulawayo. The site is regarded as one of the largest undeveloped lithium reserves in the country.
“The progress made this year on the most complex part of this plant is very good, and we should not lose sight of the fact that this initial plant at Zulu is likely only the beginning of a long and exciting development for this project,” said Premier Africa Minerals Chief Executive Officer, George Roach in the company’s August updates.
Zimbabwe is home to the world’s largest known lithium deposits and is estimated to have the highest number of lithium projects under exploration in Africa.
Zimbabwe’s government banned raw lithium exports in December 2022, citing increased trade by artisanal miners as it sought to extract more value from the mineral.
Neighbouring Mozambique is another exciting lithium prospect, according to exploration companies. In May, Mozambican mining company Magnifica and Indian miner Deccan formed a joint venture – Deccan Gold Mozambique – to establish a 100-ton-per-day lithium processing facility, leveraging a US$10 million capital injection from Deccan over the next three years
Under the agreement, lithium produced from the Mozambican concessions will be exported to India to meet the growing demand for critical minerals crucial for the Asian country’s energy transition.
In Nigeria, three Chinese companies are leading in establishing lithium processing facilities.
China’s Avatar New Energy Materials has officially launched Nigeria’s largest lithium processing plant in Nasarawa State, located in the country’s centre. The US$100 million facility has a capacity of 4,000 tonnes per day.
Canmax Technology, a prominent Chinese company responsible for approximately one-third of global battery material production, has announced a US$200 million investment for another lithium factory in Nasarawa.
Another Chinese company, Ming Xin Mineral Separation, is constructing a lithium processing plant in Kaduna state to produce EV batteries.
The Nigerian government has stipulated that no company can mine and export raw lithium unless it establishes processing plants within the country.
Tanzania is also expected to see a rise in in-country processing after announcing in 2023 that it will ban the export of unrefined lithium by mid-2024.
The Tanzanian government has outlined an export license process, stating that mining companies must establish in-country refining facilities alongside their respective operations. So far, the US company Titan Lithium Inc. is the top contender for Tanzania’s lithium reserves and plans to consolidate its position in the country.
Early in 2024, market research firm Benchmark Mineral Intelligence forecasted that Africa’s lithium production would triple year-on-year, increasing the continent’s share of global output from 4% to over 10%.
The firm attributed the rise to a surge in financing from China, which is expected to be the destination for 90% of Africa’s planned lithium supply through 2030.
Credit: Conrad Onyango, Bird Story Agency