Destinations for this strategic cargo were both within our region and to the wider world.
I was a deeply worried man.
Even more unsettling was the realisation that our country Zimbabwe did not have a law to stop this from happening. This meant that in the coming days and weeks, more raw lithium ore would be carted out of the country with impunity. That would rapidly deplete a strategic, non-renewable mineral, while giving the country modest returns, and at little or no risk to those in a hurry to export the raw ore, thus robbing us and future generations of this finite resource.
Something had to happen urgently!
Globally, lithium is a strategic mineral. It holds key to the global transition to clean energy. This alone, makes the demand for it worldwide. Countries are stampeding to secure sources for this vital resource, in anticipation of the transition to electric vehicles (EVs).
Whoever holds this resource is thus the king!
Zimbabwe is among a handful of countries lucky enough to have lithium deposits in relative abundance. So far, our country has identified lithium deposits in several provinces, principally in Mashonaland East, Masvingo, Manicaland, Mashonaland Central, Matabeleland North and in Matabeleland South. More deposits could still be found. What is more, like platinum, lithium ore comes with several other mineral by-products which are just as strategic, at the very least supportive to this global energy transition. These, too, need to be accounted for nationally.
Let me illustrate the value of this wonder mineral. As I write, German automaker, BMW announced only yesterday it is set to invest US$866m in Mexico towards the production of lithium car batteries to power its new line of electric vehicles (EVs). BMW projects that by 2030, half of all its auto sales globally will be all-electric cars; this date is a mere seven years from now! In America alone, BMW has invested some US$1.7 billion towards the same end. This is over and above what BMW is doing in mainland Europe. The world has several carmakers who, like BMW, are planning for similar transitions and investments.
Globally, rising demand for EVs is projected to cause new highs in the demand for lithium. This, together with limited sources of lithium ore globally, is projected to create a demand-supply imbalance which inevitably favours the few countries in the world with lithium deposits; Zimbabwe is one of them. In 2022 alone, global output of lithium stood at 650 000 tonnes, a figure slightly above global demand. By 2027, lithium output is projected to reach 1.47 million tonnes, well below global demand which robust global electric vehicle sales will likely push up.
Prices for two key raw materials for making electric vehicle batteries, namely lithium hydroxide and lithium carbonate, stand at a minimum of US$75 000 and US$70 000 per tonne, respectively. These prices are likely to go up, against increased demand for these two raw materials, and set against natural supply constraints. Zimbabwe, with its significant lithium deposits, should reap rewards from this worldwide energy transition. This is why responsible and creative stewardship of the mineral is very important.
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