This
week,
Zimbabwe
took
a
historic
step
to
protect
its
own
value
chains
from
external
exploitation
by
fast-tracking
a
ban
on
raw
lithium
exports,
effective
until
further
notice
–
and
the
impacts
have
been
widespread
both
domestically
and
abroad.
The February
25
ban was
immediate
and
unexpected,
as
were
its
impacts
on
global
battery
supply
chains
and
local
mining
operations.
Originally,
the
export
ban
was
planned
for
January
2027,
with
the
intent
of
incentivizing
the
local
processing
and
refining
of
lithium
instead
of
leaving
value
additions
–
and
their
associated
profits
–
to
importing
nations.
Zimbabwe
is
the
largest
producer
of
lithium
in
Africa,
and
has
some
of
the
largest
proven
lithium
reserves
in
the
world,
according
to figures from
the
US
Geological
Survey
(USGS).
Africa
is
rich
in
resources
central
to
the
clean
energy
transition.
While
this
opens
up
a
world
of
opportunity
for
many
developing
economies
around
the
continent,
it
also
comes
with
significant
tradeoffs,
including
energy
autonomy
and
the
ability
to
keep
the
profits
from
African
primary
resources
within
Africa,
where
they
are
sorely
needed. African
leaders
are
faced
with
a
dilemma –
accepting
international
investment
in
exchange
for
exporting
energy
resources
needed
within
Africa,
or
taking
the
much
more
difficult,
costly,
and
time-consuming
option
of
building
up
homegrown
value
chains.
Unfortunately,
Zimbabwe’s
surprise
ban
has
had
some
unintended
negative
consequences
on
the
ground.
“Regrettably,
in
the
period
following
that
announcement,
we
witnessed
an
unprecedented
and
unacceptable
scramble,”
Zimbabwe
information
ministry’s
Nick
Mangwana
said
in
a
statement
on
social
media.
“Instead
of
preparing
for
value
addition,
some
actors
engaged
in
a
frenzy
of
mining
activity,
seeking
to
extract
and
export
as
much
raw
lithium
as
possible
before
the
deadline,”
he
went
on
to
say.
According
to
a report from
Africa
News,
some
insiders
also
report
that
large
quantities
of
lithium
have
been
“illicitly
stockpiled
in
a
neighbouring
country.”
Mangwana
has
denounced
this
tactic
as
a
“plunder”
of
Zimbabwe’s
“economic
future”.
The
move
has
also
had
immediate
ramifications
for
Chinese
battery
manufacturers
and
global
lithium-ion
battery
value
chains,
especially
already-volatile
EV
markets.
Historically,
most
of
Zimbabwe’s
lithium
exports
have
gone
to
Chinese
markets,
and
the
South
African
nation
has
become
“a
critical
supplier
to
China’s
lithium
ecosystem”
according
to
Business
Insider
Africa.
“For
China,
which
dominates
global
lithium
processing
and
battery
manufacturing,
the
policy
shift
represents
a
direct
supply
shock,”
the
Business
Insider
report
states.
“Despite
its
midstream
dominance,
China
remains
dependent
on
imported
hard-rock
spodumene
concentrate,
sourced
largely
from
Africa
and
Australia,
to
feed
its
vast
refining
capacity.”
China
has
been
working
hard
to
establish
dominance
in
clean
energy
supply
chains
in
emerging
economies
for
years
now.
Influence
in
developing
countries
rich
in
primary
energy
manufacturing
materials
is
a
central
pillar
of
China’s
energy
security
strategy
and
its
mission
to
become
the
world’s
first
electro-state
as
well
as
the
“center
of
gravity
for
global
energy
markets.”
The
spread
of
China’s
influence has
been
rapid,
extreme,
and
shadowy
across
the
African
continent.
A 2025
report from
the
China
Global
South
Project
(CGSP)
revealed
that
“in
the
years
between
2020
and
2024,
Chinese
companies
and
financiers
have
been
involved
in
84
energy
projects
across
the
continent,
with
a
combined
capacity
of
more
than
32
gigawatts
–
enough
electricity
to
light
up
over
135
million
urban
African
homes,
or
more
than
half
a
billion
rural
homes,
every
year,”
CGSP
summarizes.
But
exporting
all
that
potential
to
China
presents
a
huge
issue
for
Africa’s
energy
future.
Today,
approximately 600
million
people in
Africa
lack
access
to
electricity,
and
the
continent’s
energy
demand
is
expected
to
increase
by
a
factor
of
three
over
the
next
decade
as
sub-Saharan
Africa
grows,
develops,
and
industrializes.
Meeting
projected
demand
will
require
power
generation
capacity
to increase
tenfold
by
2065.
Some
critics
argue
that
Zimbabwe’s
decision
to
try
to
homeshore
value
chains
has
come
too
late,
but
the
move
is
in
line
with
a
much
larger
shift
in
global
geopolitics.
“While
China
maintains
a
commanding
position
in
refining
and
battery
production,
upstream
resource
holders
are
increasingly
asserting
leverage,”
reports
Business
Insider
Africa.
Source:
Zimbabwe’s
Surprise
Lithium
Ban
Scrambles
Global
Battery
Supply
Chains
|
OilPrice.com