An already tightening supply of lithium just got a little tighter. πͺ
Zimbabwe’s Mines Minister Winston Chitando recently announced a ban on unprocessed raw lithium, mandating:βNo lithium bearing ores, or unbeneficiated lithium whatsoever, shall be exported from Zimbabwe to another country.”
Companies with lithium processing plants and those under construction are excluded.Β
In 2020, Zimbabwe was the fifth-largest producer of lithium.Β
Lithium demand is up more than 1,100% over the last two years, with supply, access to that supply, and proven reserves currently incapable of keeping up with demand.Β
Companies like Tesla, Ford, GM, and Rivian rely on lithium for EV components and production, but investors and analysts worry that the necessary metals required for EVs will continue to spike higher in price as demand grows. βοΈ This is certainly a macro trend to keep your eye on.Β