Chinese mining and refining companies are leading an increase in lithium production in Africa, overlooking supply concerns to secure future supplies of this critical battery metal.

 The continent is expected to account for nearly 11% of global supply this year, compared to nearly zero at the beginning of the decade, according to S&P Global Commodity Insights, and this is projected to rise to over 14% by 2028.

The rise in lithium prices in 2021 and 2022 prompted a wave of investment from Chinese companies in African production. However, prices have since fallen by more than 80% due to increased supply and lower-than-expected electric vehicle sales.

Despite the global production surplus expected this year, China, which manufactures most of the world’s lithium chemicals, continues to expand its refining capacity and increase its dependence on foreign materials.

With growing resistance to Chinese involvement in lithium projects in the Western world, Africa is well-positioned to fill this raw material gap.

 Over two-thirds of the continent’s production comes from Zimbabwe, where Chinese companies, including Zhejiang Huayou Cobalt, Sinomine Resources Group, and Chengxin Group, have invested billions in mining and processing facilities. Chinese-backed companies are also developing projects in Mali, Namibia, and Nigeria. While Australia, Chile, and China are expected to account for about 70% of total supply this year, African mines will help reduce their share to just over half by the end of the decade.