Global Lithium Market Shifts as China Focuses on Domestic Resources
In response to Zimbabwe’s export ban, two Chinese companies have pledged to build a lithium sulphate plant in the country. This move comes amid a broader shift in how global lithium supply chains are being managed, especially by major players like China.
China’s Tianqi Lithium has decided to focus on its domestic salt lakes rather than expanding into Africa, according to its president, Frank Ha Chun-shing. The decision is driven by geopolitical tensions and a desire to secure a stable supply of battery minerals. With the oil shock from Middle Eastern conflicts increasing global demand for electric vehicles (EVs) and battery energy storage systems (BESSs), securing raw materials has become more critical than ever.
Lithium, which can be extracted from hard rock and salt flat brines, is processed into lithium carbonate—a key material used in consumer electronics, drones, and EV batteries. However, the global supply chain is becoming increasingly fragmented due to national policies and resource nationalism.
Tianqi, which operates the world’s largest lithium brine operation in Chile and a major hard-rock lithium mine in Australia, is facing tighter restrictions on its overseas operations. In Zimbabwe, the seventh-largest supplier of hard-rock lithium, the government suspended the export of lithium concentrates in late February. This move aims to force foreign miners to invest in local processing facilities. Similarly, in Chile, Tianqi lost significant influence over the Salar de Atacama after the state increased its control over the resource.
Despite not having direct exposure to Africa, Tianqi’s president emphasized the need to invest in new lithium resource projects. However, he stated that the company will avoid Africa and instead look toward domestic salt lakes.
In response to Zimbabwe’s export ban, two Chinese firms—Huayou Cobalt and Sinomine—have promised to build a lithium sulphate plant in the country. Zimbabwe is Africa’s top lithium supplier, accounting for 9.3% of global mine production of lithium in 2024.
While China supplies over 64% of global lithium chemical products, only 16.5% of worldwide lithium reserves are located in the country. To address this, Tianqi acquired a 20% stake in Shigatse Zabuye in Tibet in 2014, securing access to the Zabuye Salt Lake—the third-largest in the world and largest in Asia.
Earlier this month, Tianqi’s new chairwoman, Jiang Anqi, highlighted the company’s shift toward exploring domestic mines. She noted that the development of high-quality domestic lithium resources cannot be delayed given current geopolitical risks.
“Against the backdrop of increasing uncertainty in the current external environment, we believe that the development of high-quality domestic lithium resources cannot be delayed any longer,” said Jiang, who took over the helm of the company founded by her father, Jiang Weiping.
China’s lithium carbonate prices surged to as high as 180,000 yuan (US$26,358) per tonne in January, tripling the level seen in June 2025. The price was trading at 177,900 yuan per tonne on Friday.
Strong demand in the downstream market has led to impressive financial performances by several lithium suppliers. For example, Tianqi saw its first-quarter net profit skyrocket by as much as 1,818% year-on-year to 1.7 billion yuan, following a net profit of 463 million yuan last year from a 7.9 billion yuan loss in 2024.
However, the lithium mineral market is becoming increasingly competitive. Zijin Mining, China’s largest gold miner, increased its lithium carbonate output nearly 100 times to 25,500 tonnes last year. Meanwhile, Contemporary Amperex Technology Ltd (CATL), China’s leading EV battery manufacturer, plans to set up an investment arm to secure raw material supply.
Tianqi’s Ha has been advocating for a globally unified pricing system to protect producers of intermediate products from an inversion of pricing. He believes that miners and battery makers are taking more profits from the industry, and he would like to see fewer national restrictions on exports and a healthier industry profit distribution for a “win-win” situation.
