Zimbabwe has the largest lithium reserves on theAfrican continent. Lithium has been mined since the colonial periodin the 1950s. It’sa critical partof rechargeablelithium-ion batteriesthat are essential for theelectric vehicle industry.
Globally, the lithium-ion battery market isworth US$78.9 billionand is likely to amount to US$349.6 billion by 2034.
In 2021, there was anew lithium rushin Zimbabwe because of increased global demand for the mineral. Today, most of Zimbabwe’s lithium mines areownedby Chinese mining companies likeSinomine,Zhejiang Huayo Cobalt,Chengxin Lithium,YahuaandCanmax.
Lithium-ion batteries aren’t made in Zimbabwe. Instead, the country exports the mineralas a raw resource.
Much of the value of Zimbabwe’s lithium –480,000 metric tonnes mined since 2015– is reaped by companies in China which make the raw lithium into batteries and other goods.
During the lithium rush, artisanal miners were involved in the lithium industry. They mined and sold raw ore. But their participation has recently slowed down because artisanal lithium mining is largely illegal.
For this reason, official data reports haven’t been able to record how much lithium has been mined this way.
In 2022, the Zimbabwean governmentbanned the export of raw lithium orein an attempt to regulate the industry andcurb artisanal lithium miningand illicit exports.
However, it was still permitted to export lithium concentrate (a powdered version of the raw mineral). But the government recently decided to ban the export of lithium concentrate from January 2027. It says the ban will improve the country’s efforts towardsbuilding facilitiesthat add value to lithium, such as lithium refineries and battery production plants.
If properly implemented and regulated, the new ban on exporting lithium concentrate could increase Zimbabwe’s self-sufficiency in lithium processing.
It could even help the country achieve the middle-income economy it has set out in itsVision 2030, in which it aims to have a mining industry that generatesUS$12 billion a year in revenue.
Zimbabwe has the world’ssecond largest reserves of platinum and huge supplies of chrome. Making goods locally from lithium would expand the mineral export revenue in addition to platinum and chrome.
However, becoming a middle-income nation is currently hampered bymining revenue leaking awaythrough losses from smuggling, tax evasion and other causes.
Also,environmental justice groupsestimate that raw lithium weighing about 3,000 metric tons leaves the country daily. Between now and the time the 2027 ban on exporting lithium concentrate comes into effect, about 1.6 million additional tonnes of raw lithium could have been extracted and sent overseas.
This means the government should not wait for 2027, but should implement the ban on lithium concentrate exports now.
The ban also doesn’t seem to be aimed at uplifting the livelihoods of communities who live nearlithium mines. I describe these communities as living in sacrifice zones: they bear the brunt of lithium mining pollution and land grabs for mines. These vulnerable groups include women, children and artisanal lithium miners who have beendisempowered by the just transition.
To use its lithium reserves to uplift the country, the government of Zimbabwe needs to establish local plans that place community development and improved livelihood of mining communities at the center of mining.
This could be done through pro-poor development policies that will create employment opportunities for local people in lithium mining frontiers. It could also include compelling mines to purchase locally made goods and fresh produce. Bringing artisanal miners into local value chains in gold, diamond and chrome mining would also help these informal miners become part of the formal mining economy.
Zimbabwe is one of the 10biggestglobal lithium exporters.
(Chile, Argentina and Australia are others.) In the first nine months of 2023 alone, it is estimated that aboutUS$209 million worth of Zimbabwean lithiumwas sold.
The potential of lithium to stimulateeconomic development and attract international investmentsis unquestionable. The problem over the last few years, however, seems to be that the marketisn’t regulated enough. Lithium mining has not created many jobs, and for the few who are employed, there’ve beengross human rights abuses, wage cuts and alack of investmentin road infrastructure.
The politics of lithium mining are also shaped by networks of political elites.
They are known as the lithium barons: people who engage incorrupt deals and smuggling.
Source: Thezimbabwemail
