China’s Lithium Prices Surge After Zimbabwe Halts Raw Exports

China’s lithium futures jumped sharply on Thursday after Zimbabwe announced an immediate suspension of exports of raw minerals and lithium concentrates, triggering fresh concerns over global supply stability.

The most actively traded lithium carbonate contract on the Guangzhou Futures Exchange rose 6.07% to 178,020 yuan ($26,043) per metric ton as of 0330 GMT. Earlier in the session, prices had surged more than 9% to 187,700 yuan, reflecting heightened market volatility.

Zimbabwe, Africa’s largest lithium producer, exported 1.128 million tons of spodumene concentrate in 2025 — an 11% increase from the previous year — with the majority shipped to China. The sudden export suspension has therefore raised concerns among Chinese refiners and battery material producers that rely heavily on Zimbabwean feedstock.

The move comes at a sensitive time for the lithium market. Since the second half of 2025, prices have been climbing on expectations of rapid expansion in energy storage systems and electric vehicle battery production. Analysts warn that any disruption to concentrate supply could tighten refining margins and further amplify price swings.

Chinese mining firms, including Zhejiang Huayou Cobalt and Sinomine Resource Group, have invested heavily in Zimbabwe’s lithium sector in recent years, underscoring the strategic importance of the country’s output to China’s battery supply chain.

Zimbabwe’s policy shift aligns with a broader trend among resource-rich nations seeking to capture more value domestically by restricting exports of raw materials and encouraging local processing. However, in the short term, the decision has injected uncertainty into global lithium markets already navigating strong demand growth.

With energy storage deployment projected to accelerate alongside renewable energy expansion, traders and industry participants will be closely monitoring whether the suspension is temporary or signals a longer-term restructuring of Zimbabwe’s mineral export policy.