African lithium production is on the charge thanks to Chinese support. Pic: Getty Images
- China is investing heavily in Africa’s rapidly emerging lithium sector
- Zimbabwe and Mali have blossomed into key sources of new lithium supply
- ASX explorers are chasing new opportunities across the continent
China dominates production and processing of wide range of strategic metals, raising concerns about supply chain security amongst Western economies.
This setting has prompted a swathe of ASX explorers, developers and producers to search the globe for alternative sources of supply.
But they are not alone.
Chinese mining and battery companies are also scouring the world for critical minerals, with Africa’s emerging lithium opportunity attracting growing interest.
Africa accounted for 14% of global lithium supply last year, according to the International Energy Agency.
That’s more than double its share just two years earlier.
The continent’s lithium potential and China’s appetite for downstream processing have created an increasingly attractive destination for Chinese capital.
The IEA estimates that China-based companies own 65% of Africa’s new lithium mining capacity, with Zimbabwe and Mali at the forefront of emerging supply.
ASX lithium companies have already played their part in facilitating China’s expanding presence in the region.
In 2022, Huayou acquired an 87% stake in Prospect Resources’ (ASX:PSC) Arcadia project in Zimbabwe for about US$378 million.
The battery materials manufacturer also agreed to acquire Atlantic Lithium (ASX:A11) and its Ewoyaa project in Ghana earlier this year, in a deal valued at US$210 million.
In 2024, ASX-listed Leo Lithium sold its remaining 40% stake in the Goulamina project in Mali to JV partner Ganfeng for about US$343 million.
Now another wave of ASX explorers is looking to uncover the next African lithium success story, with First Lithium (ASX:FL1), Chariot Resources (ASX:CC9), Australasian Metals (ASX:A8G) and Askari Metals (ASX:AS2) amongst the contenders.
China’s critical minerals grip
China’s dominance of critical minerals extends well beyond mining, with its processing capacity giving Beijing significant influence over global supply chains.
The country is the leading refiner of 19 of the 20 minerals linked to the world’s energy transition, as tracked by the IEA, with an average market share of about 70%.
Its grip is particularly pronounced in the rare earths sector.
In 2024, China accounted for around 60% of global production and more than 90% of refined output.
Tungsten tells a similar story.
China produces about 80% of mined supply and dominates processing capacity.
Last year, Beijing sent shockwaves through Western economies by introducing export restrictions on the metal, highlighting the vulnerability of downstream industries reliant on Chinese supply.
But for lithium there is a notable difference.
China’s share of global lithium refining lifted from 70% in 2024 to 75% in 2025, according to the IEA.
However, the nation accounts for about 20% of the world’s mined supply, leaving it increasingly reliant on overseas resources to feed its processing sector.
This backdrop has seen Africa emerge as an important player in the global lithium market, with production rising sharply in the past few years.
Chinese companies have spent about US$8.5 billion on African lithium assets since 2016, according to S&P Global.
The IEA also estimates that 65% of new lithium mining capacity on the continent is now owned by companies headquartered in China.
The rise of Africa
Africa’s share of global lithium supply accounted for 14% in 2025, marking a 26-fold increase from 2020.
Zimbabwe and Mali have been at the forefront of that growth, supported by Nigeria and the DRC.
According to the US Geological Survey, Zimbabwe ranked as the world’s fourth-largest producer in 2025 with its output rising 40% year-on-year to 28,000 tonnes.
Mali has emerged as the continent’s second major supplier, with production growing 12-fold in 2025 to 9400 tonnes.
The rapid expansion highlights how Chinese investment is helping reshape the global lithium supply chain, with a flurry of acquisitions and project developments strengthening the link between African resources and China’s processing industry.
Huayou’s acquisition of Arcadia was completed in April 2022, with the Zimbabwean project moving to production earlier this year.
Prospect Resources had previously advanced the asset through resource definition, feasibility studies and development planning.
Huayou’s proposed buyout of Atlantic Lithium remains subject to regulatory approvals, but completion of the deal is expected this year.
Atlantic’s flagship Ewoyaa project holds a resource totalling 36.8Mt at 1.24% Li2O and would represent Ghana’s first lithium mine, if brought to production.
The company also operates a 771km2 lithium exploration portfolio in Côte d’Ivoire.
In Mali, Ganfeng completed its acquisition of Leo Lithium’s remaining 40% interest in the Goulamina project in November 2024.
Production at the project is now ramping up following shipment of the first concentrate last year.
Chinese miner Zijin has also moved DRC’s giant Manono project to production through a JV with state-owned Cominière.
The project remains entangled in a dispute with AVZ Minerals, which claims rights over the deposit.
These developments point to China’s growing presence across Africa’s lithium industry – and the potential opportunity for ASX explorers to establish a foothold in the expanding supply chain.
ASX explorers on the charge
The new cohort of ASX explorers is looking to carve out its slice of Africa’s lithium opportunity.
In Mali, First Lithium is progressing licence renewals for its Gouna and Faraba projects.
It recently received government confirmation that both applications have progressed into processing and cabinet approval stages.
Previous drilling at Gouna returned a series of significant intercepts along 1.3km of strike of the main pegmatite body at the Blakala prospect.
One hole in 2023 delivered 111m at 1.57% Li2O.
Subsequent results included 41m at 1.91% Li2O and 37m at 1.79% Li2O.
A licence renewal could pave the way for a maiden resource estimate.
In Nigeria, Chariot Resources’ lithium hunt has already attracted Chinese interest.
The company is acquiring a majority stake in C&C Minerals, which will own the Fonlo, Iganna and Saki projects once the relevant licences are transferred.
Chariot recently executed a term sheet with ZhongNuo, C&D Co and C&C, covering a partner-funded drilling, trial-mining and direct shipping ore offtake program.
Hong Kong-based ZhongNuo has begun mapping at Iganna at its own cost, whilst C&D – a subsidiary of Chinese group Xiamen – would have the right to purchase qualifying DSO from Chariot’s portfolio.
Australasian Metals is the latest explorer to chase Africa’s lithium opportunity, having entered an option agreement last month over the Atex and Alliance lithium projects in Côte d’Ivoire.
Past drilling at Atex returned 67.97m at 1.23% Li2O and 20.77m at 1.65% Li2O.
In Namibia, Askari recently concluded a project-wide geochemical soil sampling campaign across its Uis asset, with results expected to guide follow-up work.
The project is also prospective for other metals.
It adjoins tenure hosting a tin mine and a resource totalling 77.51Mt at 0.79% Li2O, 0.15% tin and 82 parts per million tantalum.
At Stockhead, we tell it like it is. While First Lithium and Chariot Resources are Stockhead advertisers, they did not sponsor this article.
Source: stockhead.com.au
