African lithium mining booms

Africa's lithium mining industry is experiencing a surge in growth, with a significant portion of the mineral being extracted from the region's old tin mines. This emerging trend has caught the attention of experts and stakeholders, shedding light on the potential for African countries to become key players in the global lithium market. According to Thomas Matthews, Battery Materials Analyst at CRU, the demand for lithium has skyrocketed in recent years, driven by the increasing use of lithium-ion batteries in various applications such as mobile phones, laptops, electric vehicles, and energy storage systems. This surge in demand has led to a boom in lithium mining activities across the continent, with African exports of lithium increasing over five times in 2023 alone. The continent's lithium production is not only coming from industrial operations, particularly in Zimbabwe, but also from artisanal and small-scale mining, with around two-thirds of Africa's lithium output last year sourced from these smaller operations. Countries like Nigeria, Mali, Rwanda, and Mozambique are also witnessing a rise in lithium mining activities. The African lithium is primarily handpicked and can be sold directly or further upgraded to increase its value, highlighting the potential for value addition within the continent's mining sector. China plays a significant role in the processing of raw lithium materials sourced from Africa, with the majority of processing activities being carried out in Chinese facilities. Chinese intermediates are involved in buying handpicked concentrates from artisanal miners in Africa and providing equipment to enhance the lithium content of the ore. Moreover, there is a noticeable shift towards formalizing the artisanal mining sector in Africa, with the construction of concentrators in various countries like Nigeria and Namibia. Despite the potential for value addition within Africa, the current trend indicates that the raw lithium materials leaving the continent are still relatively low-grade, suggesting opportunities for further processing and value addition before export. The African Continental Free Trade Area presents an opportunity for African countries to enhance their value addition capabilities and maximize the value of their mineral resources. While the lithium market experienced record highs in 2022, the sector is currently facing a downturn due to softer demand, rollbacks of electric vehicle subsidies, trade disputes, and changes in battery chemistry reducing the need for lithium. However, experts anticipate a resurgence in demand and a significant increase in lithium prices in the next three to five years, positioning Africa as a potential market maker in the global lithium industry. Despite the challenges and complexities within the lithium market, the future looks promising for Africa's emerging lithium mining industry, with the continent poised to play a pivotal role in meeting the growing global demand for lithium and contributing to the sustainable development of the battery materials sector.