China’s lithium prices surged on Thursday after Zimbabwe suspended all raw mineral exports, raising concerns about potential supply disruptions amid growing demand for energy storage.
Lithium, often called “white gold,” is a key component in rechargeable batteries for electric vehicles (EVs) and renewable energy storage systems.
On the Guangzhou Futures Exchange, the most traded lithium carbonate contract jumped 6.07% to 178,020 yuan ($26,043) per metric ton as of 03:30 GMT, after earlier spiking more than 9% to 187,700 yuan, Reuters reported.
Zimbabwe’s export ban, announced Wednesday, covers all raw minerals and lithium concentrates. As Africa’s largest lithium producer, the country shipped 1.128 million tons of spodumene concentrate in 2025, up 11% from 2024, with most exports going to China.
Chinese companies such as Zhejiang Huayou Cobalt and Sinomine have invested heavily in the country’s lithium sector in recent years.
Africa’s first lithium sulphate plant
The move comes as Zimbabwe seeks greater control over its natural resources. Earlier this month, the country announced it will inaugurate Africa’s first lithium sulphate plant.
The project, led by Prospect Lithium Zimbabwe (PLZ) and financed by Zhejiang Huayou Cobalt, has now reached the equipment commissioning phase.
Once operational, the plant will have an annual production capacity of more than 60,000 metric tons of lithium sulphate.
The sudden export suspension has intensified concerns over the stability of raw material supplies, just as surging demand for energy storage systems has driven a strong rally in lithium prices since mid-2025.