Lithium prices and shares surged after Zimbabwe, one of the world\u2019s top producers, suspended concentrate exports, fuelling fears that global supplies of the battery ingredient will tighten.<\/p>\n
Lithium carbonate on the Guangzhou Futures Exchange rallied 5.4% to 177 000 yuan ($25 856) a ton as of 11:21 a.m. local time. Shares of lithium producers from China to Australia and the Americas also jumped.<\/p>\n
Zimbabwe halted exports of lithium concentrate from Wednesday, in a move that would promote domestic processing and curtail illegal shipments. The ban is in effect until further notice, said Mines Minister Polite Kambamura. Export authorizations will only be forthcoming to companies holding valid mining licenses and approved processing capacity, the minister said in a statement.<\/p>\n
The African nation accounted for about 10% of the world\u2019s mined lithium last year, according to the US Geological Survey. Exports of lithium sulphate, an intermediate product, wouldn\u2019t be affected by the new policy, Citic Securities said in a note.<\/p>\n
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\u201cThe higher lithium price and continuous illegal shipments are likely driving factors for why the overhaul is happening now,\u201d said Cameron Hughes, an analyst at consultancy CRU Group, who likened the move to a similar ban by the Democratic Republic of Congo on cobalt exports last year.<\/p>\n
Zimbabwe has committed to cracking down on illicit commodities trading, and introduced measures to encourage downstream processing. China\u2019s Zhejiang Huayou Cobalt and Sinomine Resource Group are both developing projects in the country to that end.<\/p>\n
Lithium prices have nearly doubled since November as demand for the mineral booms from growth in energy storage. The rally has been exacerbated by uncertainty over supply in one of China\u2019s main production hubs, returning prices to levels last seen in 2023.<\/p>\n
The market should tighten temporarily after the Zimbabwean order, according to Jefferies Financial Group Inc. \u201cWhile there were indications that Zimbabwe demands strengthened mining regulation and establishment of local supply chain\/processing capacities, the step-up of concentrate export control is not entirely expected,\u201d the bank said in a note.<\/p>\n
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Governments across the world are seeking to capture more value from their endowments of natural resources, which is creating volatility in supply chains. Congo\u2019s surprise cobalt ban lasted for months and was ultimately replaced with a quota system to limit exports. Indonesia has imposed controls on the supply of both nickel and coal in a bid to raise prices.<\/p>\n
Some 19% of China\u2019s imported lithium concentrate came from Zimbabwe last year, Citic Securities said.<\/p>\n
Shares of China\u2019s Tianqi Lithium Corp climbed as much as 7.3% in Hong Kong, while Ganfeng Lithium Group advanced 5.6%. In Australia, PLS Group rose as much as 7.6% and Mineral Resources as much as 6%. In the US, Sigma Lithium Corp closed 30% higher while Albemarle added 10%.<\/p>\n
\u00a9 2026 Bloomberg<\/p>\n
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