KEY POINTS
- Zijin Mining plans lithium production in Congo by 2026, leveraging one of the world’s largest lithium deposits.
- Legal disputes between AVZ Minerals and the Congolese government complicate development of the Manono lithium project.
- Zijin targets long-term demand growth for lithium, betting on a recovery despite recent global price declines of up to 90%.
Zijin Mining Group, a Chinese multinational, is set to begin lithium production in the Democratic Republic of Congo (DRC) by early 2026, as it seeks to tap into one of the world’s largest lithium deposits.
The decision comes amid a wider push by Chinese firms to aggressively tap Africa’s lithium resources, with operations reaching to Mali and Zimbabwe.
Congo advances EV supply chain leadership
The company’s move positions Congo as a critical player in the electric vehicle (EV) supply chain, underscoring its strategic push into Africa’s vital minerals sector.
The Manono project, as reported by MiningWeekly, located in southeastern Congo, is central to Zijin’s ambitions. However, the development is entangled in a complex legal dispute with Australian firm AVZ Minerals, which claims ownership of the exploration license. AVZ has initiated arbitration proceedings against both Zijin and the Congolese government to regain control of the project.
Legal disputes complicate Congo’s lithium development
AVZ Minerals has labeled Manono as “the world’s largest hard rock lithium deposit” and accuses the Congolese government of unlawfully seizing its permit and allocating parts of the site to Zijin in 2023. Arbitration tribunals have reportedly instructed Congo to halt development in the disputed area, though the Congolese government has allegedly ignored these rulings.
The legal quagmire surrounding the Manono project has deepened with reports of an Australian Federal Police investigation into potential bribery linked to the site. Although AVZ denies any wrongdoing, these developments have added further complexity to the already contentious negotiations.
Strategic bet amid declining lithium prices
Despite the dramatic 90 percent drop in lithium prices since their 2022 peak, Zijin remains committed to the long-term growth prospects in the electric vehicle and energy storage sectors. The company is betting that global demand for lithium will recover, positioning itself to capitalize on this rebound.
The project, with its high-grade lithium oxide deposit, could help fill the growing demand for critical battery materials. The company’s strategy reflects China’s broader objective to dominate the critical minerals value chain, which includes key assets like cobalt and copper.
Congo’s growing role in critical minerals
If fully developed according to a 2020 feasibility study by AVZ, the Manono mine could rival some of the world’s largest lithium operations, including Greenbushes in Australia and Goulamina in Mali. Even under current depressed lithium prices, analysts expect the project to be highly profitable.
Zijin is progressing with its plans to develop a phased lithium processing plant at Manono, initially producing lithium concentrate and sulfate for export. Longer-term plans include local refining, contingent on a stable power supply. A Zijin subsidiary has already refurbished a nearby hydroelectric plant to support the operation.
Beyond lithium, Zijin has a significant stake in Congo’s copper sector, including a 39.6 percent interest in the Kamoa-Kakula complex, a collaboration with Ivanhoe Mines Ltd. The company’s expanding presence highlights China’s strategic investment in Africa’s critical mineral assets, positioning it for dominance in the global supply chain for green technologies.
