Lithium prices in China surged after Zimbabwe, one of the world’s key suppliers of the battery metal, announced a suspension of lithium concentrate exports, intensifying concerns over tightening global supply.
Often referred to as “white gold,” lithium is a critical input in rechargeable batteries used in electric vehicles and renewable energy storage systems.
The export ban has unsettled markets at a time when demand for energy storage materials continues to expand.
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On the Guangzhou Futures Exchange, the most actively traded lithium carbonate contract rose 6.07 percent to 178,020 yuan (about $26,043) per metric ton as of 03:30 GMT, after earlier climbing more than 9 percent to 187,700 yuan, according to Reuters.
Zimbabwe’s decision, announced on Wednesday, applies to all raw mineral exports, including lithium concentrates.
As Africa’s largest lithium producer, the country exported 1.128 million tons of spodumene concentrate in 2025, marking an 11 percent increase from the previous year. The bulk of those shipments were destined for China.
Chinese firms, including Zhejiang Huayou Cobalt and Sinomine, have made substantial investments in Zimbabwe’s lithium sector in recent years, deepening trade ties between the two countries.
The export halt comes as Zimbabwe moves to increase domestic value addition and strengthen control over its mineral resources.
Earlier this month, authorities confirmed plans to inaugurate Africa’s first lithium sulphate plant.
The facility, led by Prospect Lithium Zimbabwe and financed by Zhejiang Huayou Cobalt, has entered the equipment commissioning phase.
Once fully operational, it is expected to produce more than 60,000 metric tons of lithium sulphate annually.
The sudden suspension of exports has amplified worries about supply chain stability just as lithium prices have been rallying since mid-2025, driven by surging demand for electric vehicles and large-scale energy storage systems.
