Zimbabwe's surprise lithium ban scrambles global battery supply chains

Last week, Zimbabwe took a landmark step to safeguard its domestic value chains by fast-tracking a ban on raw lithium exports, effective immediately and set to remain in place until further notice. The move, announced on February 25, caught both local and international markets by surprise, creating immediate disruptions for global battery supply chains and local mining operations. Initially, the export ban had been scheduled for January 2027, intended to encourage local processing and refining of lithium, rather than allowing foreign countries to capture the associated profits. Zimbabwe, the largest lithium producer in Africa, holds some of the world's largest proven reserves, according to the US Geological Survey.

The continent's abundance of resources critical to the clean energy transition offers immense opportunities but comes with complex trade-offs. African leaders face the challenge of balancing the inflow of international investment against the imperative to retain value locally. Building domestic value chains is far more costly, time-consuming, and technically demanding than simply exporting raw resources, but it ensures that profits and industrial capacity remain within Africa.

Zimbabwe's sudden ban, however, has had unintended consequences. Nick Mangwana, spokesperson for the Ministry of Information, said that instead of focusing on domestic value addition, some actors rushed to extract and export as much raw lithium as possible before the deadline. Reports also suggest that large quantities of lithium have been illicitly stockpiled in a neighbouring country, a practice Mangwana condemned as the plunder of Zimbabwe's economic future.

The export halt has sent ripples through Chinese battery manufacturers and the global lithium-ion market, particularly affecting electric vehicle supply chains. Historically, most of Zimbabwe's lithium exports have gone to China, making the country a critical supplier to Chinese lithium processing and battery production. Business Insider Africa described Zimbabwe's move as a direct supply shock for China, which, despite dominating midstream battery production, still relies heavily on imported spodumene concentrate from Africa and Australia to feed its refining capacity.

China's strategic investments across Africa have been extensive and rapid. Between 2020 and 2024, Chinese companies and financiers participated in 84 energy projects across the continent, generating over 32 gigawatts of electricity—enough to power millions of urban and rural homes annually. While this has strengthened China's energy security and positioned it as a central player in global energy markets, it has also highlighted the risks of exporting Africa's raw energy potential. The continent still faces massive energy deficits, with roughly 600 million people lacking electricity and projected demand expected to triple over the next decade, necessitating a tenfold increase in power generation by 2065.

Critics argue that Zimbabwe's policy to bring value chains home may be late, but the decision aligns with a broader global trend of upstream resource holders asserting leverage. While China continues to dominate refining and battery production, African nations are increasingly seeking to retain economic benefits locally and strengthen industrial capacity within the continent, signalling a shift in the geopolitics of the clean energy transition.