The Goulamina project in Mali’s Bougouni region is thought to be one of the largest hard rock lithium mines in the world, with a targeted annual capacity of producing spodumene concentrates at over 90,000 tonnes of lithium carbonate equivalent. The Goulalmina project is expected to start production in late 2023/early 2024.

China lithium producer Ganfeng Lithium acquired a 50% stake in the Goulamina hard-rock mine for $130mn in June 2021, while Australia-listed Firefinch holds the remaining 50%.

Rystad Energy estimates that by 2025, Africa will account for about 10% of the lithium mine capacity globally, with at least eight lithium projects expected to start production in the next 1–3 years, some of them fully or partially acquired by Chinese companies.

‘The involvement of Chinese companies is likely to guarantee the planned development of those lithium projects. That said, less developed transportation infrastructure in some areas in Africa might post some challenges to the scheduled start-up of production and shipment of lithium from the continent,’ notes Susan Zou, Senior Analyst, Rystad Energy.

The mining capacity on the African continent is thought to be particularly attractive as the world faces a constrained raw material supply. Chinese electric vehicle (EV) manufacturer BYD Auto has reportedly been in talks to purchase six mines on the continent as it looks to keep up with its growing needs for internal supply and meeting offtake agreements for other auto manufacturers.

The mines currently operating in Africa have a combined capacity of around 250,000 t/y lithium carbonate equivalent. However, most of these are yet to realise their operating status, which would mean significant supply from this region could take close to 4–5 years to hit the market, according to Rystad Energy.

‘Given the various environmental, social and governance (ESG) concerns surrounding mining operations in Africa, these big investments are an indication that securing supply is right now at the forefront of companies concerns. Addressing ESG concerns from the get-go as well as scaling their supply chain will require a challenging balancing act for the industry,’ Zou says.

First European lithium refining and conversion plant
In related news, Technip Energies has been awarded a bankable feasibility study contract by Viridian Lithium for the construction of what is claimed will be the first lithium refining and conversion plant in Europe.

Located in Lauterbourg, France, the plant will produce up to 100,000 t/y of battery grade lithium chemicals – the equivalent capacity to power 2mn electric vehicles – providing a secure and sustainable battery supply chain for the transition to electric mobility.