Africa’s fast-growing lithium industry has received an unexpected boost after battery-metal prices rebounded sharply this year, improving the outlook for producers from Zimbabwe to Mali and for new mining projects preparing to enter the market. The recovery, however, may prove difficult to sustain.
As lithium prices climb, miners that suspended production during the market downturn are preparing to restart operations, raising the prospect of another wave of supply that could once again pressure prices.
Battery-grade lithium carbonate recently rose to about 165,000 yuan ($24,347) per tonne, rebounding from a three-month low of 151,750 yuan in late June, according to Trading Economics.
The recovery follows more than two years of heavy losses after rapid global production outpaced demand, sending lithium prices into one of the deepest downturns in the history of the battery metals market.
Supply shock sparks recovery
