Lithium prices in China spiked on Thursday following Zimbabwe’s sudden suspension of raw mineral exports. The move has ignited significant supply chain anxieties at a critical juncture, as the rapidly expanding energy storage sector continues to drive a massive market boom.
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The impact was immediately felt on the Guangzhou Futures Exchange. The most-traded lithium carbonate contract jumped 6.07% to C¥178,020 (approximately US$26,043.45) per metric ton. Earlier in the session, volatility sent prices surging more than 9%, hitting a peak of C¥187,700.
On Wednesday, Zimbabwe suspended the export of all raw minerals and lithium concentrates with immediate effect. As Africa’s largest lithium producer, the country plays a pivotal role in the global battery ecosystem:
- 2025 Output: Zimbabwe exported 1.128 million tons of spodumene concentrate, marking an 11% increase year-over-year.
- Chinese Dependency: The vast majority of this volume is shipped directly to China to fuel its battery manufacturing hubs.
- Corporate Investment: Major Chinese firms, including Zhejiang Huayou Cobalt and Sinomine, have poured billions into Zimbabwean mining infrastructure in recent years and now face immediate operational uncertainty.
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The timing of the ban is particularly sensitive. Lithium prices have been on a steady rally since the second half of 2025, bolstered by a surge in global demand for Energy Storage Systems (ESS). This sector is increasingly competing with the electric vehicle (EV) market for high-grade lithium supply.
Analysts suggest that if the suspension remains in place, it could create a significant supply-demand gap, further inflating costs for battery producers and renewable energy developers worldwide.
