Zijin Mining develops its first lithium exploration project in the Democratic Republic of the Congo

China Zijin Mining Group has developed its first lithium exploration project
in the Democratic Republic of the Congo by partnering with Cominiere, a state-owned company in the Democratic Republic of the Congo.

The joint venture, called Katamba Mining, has secured mining rights
to two greenfield exploration and mining projects around the Manono lithium mine in the Democratic Republic of Congo, the parties said in a statement.

Zijin said the move was aimed at enhancing the company's "competitiveness in the field of new energy minerals.
"
This follows new investment in the smelter of its Kamoa-Kakula copper project, which is being developed in the Democratic Republic of the Congo with Ivanhoe Mines in Canada to reduce reliance
on third-party smelters.

AVZ Minerals' Manono lithium-tin project has 8.
78 million tonnes of lithium oxide reserves
.
The Australian miner is developing the mine
with the help of Chinese capital.

With lithium widely used in lithium-ion batteries for electric vehicles (EVs), the global demand for lithium is on the rise
.

According to Chilean copper agency Cochilco, the electric vehicle industry will dominate lithium demand in the coming years and will account for nearly three-quarters of battery metal consumption by 2030, up from 41%
in 2020.

The industry body believes that by the end of the century, lithium hydroxide accounted for about 56% of total consumption, while carbonate accounted for 44%.

Cochilco said the shift could largely be explained by manufacturers' growing preference for nickel-intensive cathodes, which tend to use hydroxides rather than
carbonates.

Demand related to mobile phones, computers and tablets, and other consumer goods will reach 411,000 tonnes by 2030, compared to 79,000 tonnes
this year.

Supply shortages

Rio Tinto's lithium plan in Serbia last week was crushed, and electric vehicle sales are expected to account for 55 percent of total global light vehicle sales by 2030, or about 65 million units
.
This means that manufacturers will need about 3 million tons of lithium, while the one they consume today is about 350,000 tons
.

However, Rio Tinto warned that existing operations and projects combined are expected to contribute only 1 million tonnes of lithium
.
Experts say the global lithium shortage is expected to continue for at least another three years, but will be further exacerbated
with the cancellation of Rio Tinto's Jadar lithium project.

"We are now at a point where lithium supply will determine the pace of EV rollouts," Credit Suisse analyst Saul Kavonic said
.

A recent report by the International Energy Agency's IEA recommended that governments start stockpiling battery metals, noting that lithium demand could increase 40-fold
over the next 20 years.
Fatih Birol, executive director of the International Energy Agency, said it would become an "energy security" issue
.

The IEA data also shows that although mine supply mainly comes from Chile and Australia, China dominates the lithium processing industry, accounting for 58%
of the global lithium processing share.