Zimbabwe lithium export ban lifts prices and producer shares

Zimbabwe’s decision to halt exports of lithium concentrate has shaken global markets, sending both commodity prices and producer shares higher. On the Guangzhou Futures Exchange, lithium carbonate jumped 5.4 percent to 177,000 yuan ($25,856) a ton by late morning, reflecting concerns over tightening supplies of the battery-critical mineral. Investors reacted swiftly, with shares of lithium companies across China, Australia, and the Americas climbing as traders adjusted to the new restrictions.

The ban, announced by Mines Minister Polite Kambamura, applies to concentrate exports but allows shipments from licensed mines with approved processing plants. Zimbabwe, which produced about 10 percent of the world’s mined lithium last year according to the U.S. Geological Survey, said the move will boost domestic processing and curb illegal exports—a strategy similar to Congo’s cobalt limits in 2025. “The higher lithium price and ongoing illegal shipments are likely driving this overhaul now,” said Cameron Hughes of CRU Group.

Zimbabwe lithium exports rise 30%

Zimbabwe’s lithium output has grown rapidly. In the first half of 2025, the country sold 586,197 metric tons of spodumene concentrate, up 30 percent from the same period in 2024. Prices had collapsed from over $80,000 a ton in 2022 to $8,450 by mid-2025, before rebounding recently amid rising energy storage demand and production uncertainties. Last year, Zimbabwe exported 1.128 million metric tons of spodumene concentrate, and production is projected to reach 160,000 tonnes of lithium carbonate equivalent by 2030, outpacing other regional producers.

The export ban coincides with signs of broader economic stability. Zimbabwe recorded its first single-digit inflation in over 20 years, with rates dropping to 4.1 percent in January 2026, supported by tighter monetary policies and smoother supply chains. The ZiG, partly backed by gold, has held a steady official exchange rate, while parallel-market premiums remain near 20 percent. Gold production is expected to surpass 38.4 tons in 2024, with Caledonia Mining Corporation planning a $132 million investment in Zimbabwe’s largest gold mine this year, part of a $162.5 million capital plan targeting 200,000 ounces of annual production by 2029.

Lithium supply tightens amid Zimbabwe ban

Global lithium markets are already reacting. China imported 19 percent of its lithium concentrate from Zimbabwe last year. Shares of Chinese producers responded sharply: Tianqi Lithium Corp. rose 7.3 percent in Hong Kong, Ganfeng Lithium Group gained 5.6 percent, while Australian companies PLS Group Ltd. and Mineral Resources Ltd. climbed 7.6 percent and 6 percent, respectively. In the U.S., Sigma Lithium Corp. jumped 30 percent and Albemarle Corp. rose 10 percent, reflecting investor concern over supply and regulatory changes.

Zimbabwe’s ban highlights the challenges governments face in managing natural resources. While it tightens supply in the near term, long-term effects will hinge on how the country balances export limits, domestic processing incentives, and enforcement against illicit trade. For now, global markets are watching as Zimbabwe positions itself as a key supplier in the fast-growing energy storage sector.