Nine Lithium Projects Are Under Development in Africa And Are Expected To Grow, Especially From Chinese Companies.

A country risk and industry study published by Fitch Solutions predicts an increase in lithium development projects in Africa, particularly from Chinese companies. Investment has been boosted by expectations that lithium will defy the downward trend in most non-ferrous metals in the second half amid strong demand.

The report estimates that there are currently nine lithium projects under development in Africa in Zimbabwe, Namibia, Mali, Ghana and the Democratic Republic of the Congo (DRC), but that is still small compared with the number of projects under development in the Americas, Australia and Europe.

Bolstered by the Arcadia Lithium project and government support, Zimbabwe is expected to remain the continent's largest lithium producer in the near term.

Namibia's Karibib project could benefit European battery makers with an environmental, social and corporate governance focus, according to the report.

The report notes that political instability in Mali could pose risks to project development.

The report further states that the continued success of AVZ Mineral's US $454 million Manono project in the Democratic Republic of Congo will add an edge to the development of the domestic lithium industry.

报告认为项目的国家low national risk levels, such as Ghana, are more likely to attract funds from risk-averse investors.

The report predicts an increase in lithium development activity in Africa amid optimism for a sustained recovery in lithium prices.

The report argues that efforts to diversify lithium sources will attract foreign investment into Africa in the coming years as major economies seek to secure lithium for their battery supply chains. Lithium is a key raw material necessary for the transition to a green economy.

The report predicts that the Americas will remain a significant producer of lithium in the coming years, with strong production in Argentina and Chile and a big rise in Canadian production. The Americas will remain steadfast in the global race to develop and produce key raw materials and will show very strong growth over the next decade.

In terms of resources, the Lithium Triangle of Argentina, Bolivia and Chile alone accounts for 56 percent of the world's known lithium resources. Fitch, a consultancy, expects this dominance to continue because, despite the accelerated pace of exploration, it will take a long time for other countries to catch up.

Due to the lucrative Lithium Triangle brine extraction, Fitch expects strong investor interest in the region in the coming years, which will lead to rising project development and production, although challenges related to resource nationalism and community opposition are expected to rise.

Canadian companies are also expected to benefit from a supportive regulatory environment, state-backed infrastructure investments, and fast-growing battery and electric vehicle manufacturing investments in Quebec and Ontario.