China’s Sichuan Yahua Industrial Group announced on Tuesday that it had secured a six-month export quota for lithium concentrates from Zimbabwe. This development comes two months after Africa ‘s top lithium producer suspended exports of the crucial battery material, and shortly after Zimbabwe granted export quotas to select companies earlier this month.
Yahua Group stated that the quota will be sufficient to ensure normal production at its Kamativi Mine, responding to an investor inquiry on an online Q&A platform affiliated with the Shenzhen Stock Exchange.
The company is currently undergoing the necessary procedures to resume exports, according to its statement.
These developments follow Zimbabwe’s decision to grant export quotas to two Chinese mining firms for lithium concentrates.
The firms, Chengxin Lithium and Sinomine Resources operate lithium mining facilities in Zimbabwe, according to state media reports on Monday.
Zimbabwe suspended exports of all raw minerals and lithium concentrates in February, citing concerns over alleged malpractice and leakage.
Earlier this month, the government notified producers that it would introduce lithium concentrate export quotas, with requirements that included commitments to increase local processing.
In 2023, Zimbabwe exported 1.13-million tons of lithium- bearing spodumene concentrate to China, accounting for about 15% of China’s lithium concentrate imports that year.
The resumption of lithium concentrate exports from Zimbabwe is expected to ease supply concerns for Chinese battery manufacturers, potentially stabilizing prices in the global market. These quotas may help mitigate shortages and contribute to a more secure supply chain for the electric vehicle and energy storage industries worldwide.
Huayou Cobalt, another major Chinese investor in Zimbabwe’s lithium mining sector, stated it had not yet received any notice from the Zimbabwean government, according to Monday’s state media report.
A spokesperson from Zimbabwe’s Ministry of Mines commented that the new quota system aims to encourage local processing and maximise economic benefits for the country, underscoring the government’s commitment to sustainable development and value addition within the mining sector.