Lithium mines in Africa: The battleground between China, the United States and Europe (1)
Lithium, known as the green metal, is a key material in making electric vehicle batteries, or lithium batteries. It is an important strategic metal in the 21st century and can store electrical energy better than any other mineral. Therefore, in the context of global energy transformation, it is not difficult to understand that China, the United States and Europe are increasingly interested in this kind of platinum. The fierce competition between China, the United States and Europe in the field of strategic mineral resources, especially in the field of lithium mining, is also unfolding in Africa.
In this picture taken on Tuesday, March 28, 2017, pieces of lithium sparkle in ore sample placed on a table in Prague, Czech Republic. Recent explorations confirmed large deposits of lithium near the village of Cinovec northwest Czech Republic, which are considered the biggest on the European continent. (AP Photo/Petr David Josek) 矿石样品中的锂碎片 AP - Petr David Josek
According to data provided by the United States Geological Survey (USGS) , Africa's lithium mineral resources are mainly distributed in five countries: Congo (DRC), Mali , Zimbabwe , Ghana and Namibia . Congo (DRC) has proven lithium metal reserves of 3 million tons, Mali 840,000 tons, Zimbabwe 690,000 tons, Namibia 230,000 tons, and Ghana 180,000 tons. Africa's lithium mines have huge potential. From the perspective of global lithium resource reserves , the five largest lithium- rich countries in Africa account for 5.1% of the world's total. This is only the result of a small amount of exploration so far , and the green metal mineral reserves on the African continent Exploration is just getting started. Africa currently has only one producing lithium mine in Zimbabwe, Bikita , and most projects are still in the early stages of exploration. From the perspective of lithium ore quality , the overall grade of African lithium ores is higher than that of other regions in the world. Chinese companies currently entering the African lithium mining industry include Ganfeng Lithium Industry , Shengxin Lithium Energy, China Mining Resources , Yahua Group , Huayou Cobalt , etc.
Not long ago, Morocco’s 360 News published a long article describing in detail the competition between China and the United States over the rights to mine lithium mines in recent years . The article pointed out that in this mineral competition , Beijing has taken the lead very early and has made large investments in several African countries over the past decade . One of the latest operations is that Hainan Mining, a subsidiary of the Chinese company Fosun International, signed an agreement with the British non-ferrous metals group (Kodal Minerals) in January 2023 to provide its subsidiary Kodal Mining UK Limited. Investing US$ 100 million to control the Bougouni lithium mine project company in Mali, West Africa; the mine 's production capacity will reach nearly 2 million tons in eight and a half years. Also in Mali , West Africa , another Chinese company, Jiangxi Ganfeng Lithium Industry , one of the world's largest lithium producers , has established a joint venture , a subsidiary of Leo Lithium , since 2021 . Invested US $ 130 million to acquire 50% stake in Mali Lithium Industry . The Sino-Australian joint venture will develop a lithium mining project covering an area of 100 square kilometers . This is the first lithium mine in West Africa , located about 150 kilometers south of Bamako . It is expected to produce 726,000 tons of lithium per year and can be mined for 23 years. The project is scheduled to be put into production . The Sino-Australian joint venture announced on April 19 this year that it would acquire 100 equity% in two mining areas near Goulamina for US$3.11 million .
The Democratic Republic of Congo, located in Central Africa, is extremely rich in underground mineral resources and has been coveted by many Chinese mining industries . At the end of 2020, Jiangxi Ganfeng Lithium Industry reached a five-year agreement with Australian AVZ Minerals to acquire the Manono Mine Congo (DRC) , considered the world’s largest lithium mine . ) nearly one-third of the shares . The mine produces 160,000 tons of lithium annually .
Zimbabwe, located in southern Africa , is another country in Africa with a large amount of unexploited lithium deposits . The country has also attracted investors . In 2021, China Huayou Cobalt acquired 100% equity and related debt rights in Zimbabwe 's Prospect Lithium Mine for US$422 million , and obtained 100% of the mining rights of Zimbabwe 's Arcadia Lithium Mine. The mining rights will be completed in April 2022. It is reported that the Arcadia project located on the outskirts of Harare, the capital of Zimbabwe, is considered one of the largest hard rock lithium mines in the world , with an annual output of 173,000 tons of lithium. In 2021, two other Chinese companies, Shenzhen Chengxin Lithium Group and China Mining Resources Group , also invested in Zimbabwe Lithium Industry .
In addition to mining , Chinese companies are increasingly betting on the lithium ore processing industry . In May 2022, Zhejiang Huayou announced an investment of US$ 300 million to develop the mine and build a factory that can process approximately 4.5 million tons of ore and produce 400,000 tons of lithium concentrate per year .
Lithium ore processing in Morocco, North Africa, has attracted increasing attention from China and the United States. Phosphoric acid is the basic raw material for processing phosphate rocklithium batteries reserves account for more than 70% of the world's reserves. It can be said that this North African country has the say in global battery material supply and the cost of new energy vehicles . Morocco is also a North African country that has signed trade agreement with the United States .
On April 5 this year, South Korea's LGES Group the world's second largest battery manufacturer and China Yahua Industry Group signed an agreement to produce lithium hydroxide in Morocco . The goal is to strengthen the lithium supply chain , especially for the European and American markets .
China is the world's largest lithium battery producer , accounting for 75% of global production. The reason why it expands partnerships and acquisitions in Africa is to ensure the supply of and consolidate its position as the world's leading manufacturer . The status of lithium battery manufacturers . According to a UBS report quoted by Bloomberg , the lithium mine production controlled by Chinese companies will reach 705,000 tons by 2025 , while this figure will be 194,000 tons in 2022 , which will make China Share of global supply increases from 24% in 2022 to 32% in 2025. This growth has been driven by China’s acquisition of numerous mining rights in Africa .
According to data provided by the United States Geological Survey (USGS) , Africa's lithium mineral resources are mainly distributed in five countries: Congo (DRC), Mali , Zimbabwe , Ghana and Namibia . Congo (DRC) has proven lithium metal reserves of 3 million tons, Mali 840,000 tons, Zimbabwe 690,000 tons, Namibia 230,000 tons, and Ghana 180,000 tons. Africa's lithium mines have huge potential. From the perspective of global lithium resource reserves , the five largest lithium- rich countries in Africa account for 5.1% of the world's total. This is only the result of a small amount of exploration so far , and the green metal mineral reserves on the African continent Exploration is just getting started. Africa currently has only one producing lithium mine in Zimbabwe, Bikita , and most projects are still in the early stages of exploration. From the perspective of lithium ore quality , the overall grade of African lithium ores is higher than that of other regions in the world. Chinese companies currently entering the African lithium mining industry include Ganfeng Lithium Industry , Shengxin Lithium Energy, China Mining Resources , Yahua Group , Huayou Cobalt , etc.
Not long ago, Morocco’s 360 News published a long article describing in detail the competition between China and the United States over the rights to mine lithium mines in recent years . The article pointed out that in this mineral competition , Beijing has taken the lead very early and has made large investments in several African countries over the past decade . One of the latest operations is that Hainan Mining, a subsidiary of the Chinese company Fosun International, signed an agreement with the British non-ferrous metals group (Kodal Minerals) in January 2023 to provide its subsidiary Kodal Mining UK Limited. Investing US$ 100 million to control the Bougouni lithium mine project company in Mali, West Africa; the mine 's production capacity will reach nearly 2 million tons in eight and a half years. Also in Mali , West Africa , another Chinese company, Jiangxi Ganfeng Lithium Industry , one of the world's largest lithium producers , has established a joint venture , a subsidiary of Leo Lithium , since 2021 . Invested US $ 130 million to acquire 50% stake in Mali Lithium Industry . The Sino-Australian joint venture will develop a lithium mining project covering an area of 100 square kilometers . This is the first lithium mine in West Africa , located about 150 kilometers south of Bamako . It is expected to produce 726,000 tons of lithium per year and can be mined for 23 years. The project is scheduled to be put into production . The Sino-Australian joint venture announced on April 19 this year that it would acquire 100 equity% in two mining areas near Goulamina for US$3.11 million .
The Democratic Republic of Congo, located in Central Africa, is extremely rich in underground mineral resources and has been coveted by many Chinese mining industries . At the end of 2020, Jiangxi Ganfeng Lithium Industry reached a five-year agreement with Australian AVZ Minerals to acquire the Manono Mine Congo (DRC) , considered the world’s largest lithium mine . ) nearly one-third of the shares . The mine produces 160,000 tons of lithium annually .
Zimbabwe, located in southern Africa , is another country in Africa with a large amount of unexploited lithium deposits . The country has also attracted investors . In 2021, China Huayou Cobalt acquired 100% equity and related debt rights in Zimbabwe 's Prospect Lithium Mine for US$422 million , and obtained 100% of the mining rights of Zimbabwe 's Arcadia Lithium Mine. The mining rights will be completed in April 2022. It is reported that the Arcadia project located on the outskirts of Harare, the capital of Zimbabwe, is considered one of the largest hard rock lithium mines in the world , with an annual output of 173,000 tons of lithium. In 2021, two other Chinese companies, Shenzhen Chengxin Lithium Group and China Mining Resources Group , also invested in Zimbabwe Lithium Industry .
In addition to mining , Chinese companies are increasingly betting on the lithium ore processing industry . In May 2022, Zhejiang Huayou announced an investment of US$ 300 million to develop the mine and build a factory that can process approximately 4.5 million tons of ore and produce 400,000 tons of lithium concentrate per year .
Lithium ore processing in Morocco, North Africa, has attracted increasing attention from China and the United States. Phosphoric acid is the basic raw material for processing phosphate rocklithium batteries reserves account for more than 70% of the world's reserves. It can be said that this North African country has the say in global battery material supply and the cost of new energy vehicles . Morocco is also a North African country that has signed trade agreement with the United States .
On April 5 this year, South Korea's LGES Group the world's second largest battery manufacturer and China Yahua Industry Group signed an agreement to produce lithium hydroxide in Morocco . The goal is to strengthen the lithium supply chain , especially for the European and American markets .
China is the world's largest lithium battery producer , accounting for 75% of global production. The reason why it expands partnerships and acquisitions in Africa is to ensure the supply of and consolidate its position as the world's leading manufacturer . The status of lithium battery manufacturers . According to a UBS report quoted by Bloomberg , the lithium mine production controlled by Chinese companies will reach 705,000 tons by 2025 , while this figure will be 194,000 tons in 2022 , which will make China Share of global supply increases from 24% in 2022 to 32% in 2025. This growth has been driven by China’s acquisition of numerous mining rights in Africa .