Analysts predict that strong electric vehicle (EV) sales in China, coupled with the suspension of certain mines, will help stabilize lithium prices this year. Prices have plummeted over 80% since their peak in November 2022, primarily due to oversupply and slower-than-expected growth in EV sales.
CEO Trevor Barnard expressed optimism that prices will rebound more significantly next year, although he does not foresee them reaching the record highs of 2022.
"That was obviously a bubble driven by huge demand forecasts and huge positive sentiment around lithium," he remarked regarding the 2022 price surge.
As Africa's largest lithium producer, Zimbabwe has attracted over $1 billion in investments for lithium projects since 2021, predominantly from Chinese battery metal firms, according to company filings.
While not disclosing the names of the Chinese investors, Barnard indicated that they are expected to finalize their agreement with Kuvimba to construct a lithium concentrator with a capacity of 600,000 metric tons per year at the Sandawana mine.
"We did a review of the Sandawana project and we found that it is still a very good project to proceed with because of the quality of the resource and the size of the resource as well," Barnard stated.
Chinese companies such as Zhejiang Huayou Cobalt, Sinomine Resource Group, Chengxin Lithium Group, Yahua Group, and Canmax have been active in acquiring lithium assets in Zimbabwe, as the country aims to strengthen its role in the global battery metal supply chain.