Lithium prices and shares surged after Zimbabwe, a top global producer, halted lithium concentrate exports, raising fears of shrinking worldwide supply of the essential battery metal.
Lithium prices in China jumped on Thursday following Zimbabwe’s decision to halt all raw mineral exports, sparking fears of potential supply shortages amid rising demand for energy storage solutions.
Often referred to as “white gold,” lithium is a crucial ingredient in batteries for electric vehicles (EVs) and renewable energy storage technologies.
Trading on the Guangzhou Futures Exchange saw the most active lithium carbonate contract climb 6.07% to 178,020 yuan ($26,043) per metric ton by 03:30 GMT, after earlier surging over 9% to 187,700 yuan, according to Reuters.
The export restriction announced by Zimbabwe on Wednesday affects all raw minerals, including lithium concentrates. As Africa’s top lithium producer, Zimbabwe shipped 1.128 million tons of spodumene concentrate in 2025, an 11% increase from 2024, with the majority destined for China.
Major Chinese firms, including Zhejiang Huayou Cobalt and Sinomine, have heavily invested in Zimbabwe’s lithium sector in recent years.
Earlier this month, Zimbabwe revealed plans to launch Africa’s first lithium sulphate manufacturing plant, reflecting its push for greater control over natural resources.
The facility, managed by Prospect Lithium Zimbabwe (PLZ) and funded by Zhejiang Huayou Cobalt, has entered the equipment commissioning phase.
Upon completion, the plant is expected to produce over 60,000 metric tons of lithium sulphate annually.
The abrupt suspension of exports has heightened worries over the reliability of raw material supply, just as booming demand for energy storage has fueled a strong rally in lithium prices since mid-2025.
