[Sinomine Resource Group: Subsidiary’s Two High-Purity Lithium Chemicals Production Lines Resume Production] On August 10, Sinomine Resource Group announced that its wholly-owned subsidiary Jiangxi Sinomine Lithium Industry, due to a mismatch between lithium concentrates transportation and production scheduling, temporarily shut down the "Annual 30,000 mt High-Purity Lithium Chemicals" and "Annual 35,000 mt High-Purity Lithium Chemicals" production lines for maintenance starting from June 30, 2026. With the maintenance now completed, the company has decided to resume production at the "Annual 30,000 mt High-Purity Lithium Chemicals" line on August 10, 2026, and plans to gradually resume production at the "Annual 35,000 mt High-Purity Lithium Chemicals" line in mid-August 2026.

[SMM Cobalt & Lithium Morning Call: Raw Material Prices Diverge, Industry Demand Maintains Structural Support] This week, industry chain prices showed divergence. Lithium ore, lithium chemicals, nickel chemicals and cobalt products were overall under pressure. Downstream procurement remained focused on long-term contract cargo pick-ups and essential restocking, and the market still held expectations of increasing supply and price declines in the long term. Cathode material side, ternary system prices pulled back along with raw material costs, while LFP and iron phosphate strengthened slightly, supported by order growth and cost support. Anode and separator markets held stable overall, and electrolyte moved up, driven by rising additive and solvent prices. Demand from energy storage, commercial vehicles and markets outside China maintained good performance, supporting continued growth in the industry's production schedules, but recovery on the consumption side remained relatively slow.

On July 22, 2026, the first batch of spodumene concentrate produced by Manono Lithium – a company 54.9% owned by Zijin Mining – was shipped from Mutowa Port in Tanganyika Province, Democratic Republic of the Congo (DRC), bound for international markets via Kigoma, Tanzania. Prior to shipment, the cargo was inspected and certified by the DRC's Centre d'Expertise, d'Évaluation et de Certification des Substances Minérales (CEEC), which stated that this transport marks the country's first-ever export of lithium products. The Governor of Tanganyika Province supervised the loading and noted that the shipment represents a key milestone for the province's integration into the regional mining trade network. He also called on the operating company to prioritize local hiring, so that the development of the mineral supply chain can generate more jobs and broader economic benefits for local residents. However, the commercial significance of the shipment remains difficult to assess, as the export volume, concentrate grade, transaction value, buyer identity, and final destination after arrival in Kigoma have not been disclosed. Future export plans have also not been announced.Manono Lithium operates the northeastern part of the Manono deposit under mining permit PE 15775. Its shareholding structure is: Zijin Mining affiliates hold 54.9%, DRC state-owned mining company Cominière holds 35.1%, and the DRC government holds 10%. The project is designed to process 5 million tonnes of ore annually, with a target output of approximately 1 million tonnes of spodumene concentrate per year. Subsequent crushing, flotation, and lithium compound processing facilities will be built in phases, and the first-stage lithium sulphate raw material production project is expected to be completed by the end of 2026.

Zimbabwe exported US$782 million worth of lithium products in the first half of 2026, representing a 230% year on year increase from US$237 million in H1 2025, according to Finance Minister Mthuli Ncube during the country's mid-year budget review. Lithium accounted for approximately 12% of Zimbabwe's total mineral export revenue, ranking behind only gold and platinum group metals (PGMs), further strengthening its position as one of the country's key export commodities. The government expects lithium's contribution to increase further following the April 2026 commissioning of Zimbabwe's first lithium sulphate plant, marking a significant step in the country's strategy to move up the battery materials value chain. Zimbabwe continues to require foreign investors, particularly Chinese mining companies, to expand downstream processing capacity within the country. As part of its beneficiation policy, Zimbabwe plans to ban lithium concentrate exports from January 2027, encouraging producers to export higher-value processed lithium products instead. According to the Ministry of Finance, 2026 lithium production is forecast at 2.14 million metric tons, slightly below the 2.2 million metric tons produced in 2025. Earlier this year, Zimbabwe temporarily suspended lithium concentrate exports in February, citing irregularities and leakages in export activities. Official data also showed Zimbabwe exported 1.13 million metric tons of lithium products in 2025, suggesting inventories have accumulated at several mining operations as export restrictions and processing capacity continue to evolve. Zimbabwe's lithium sector remains dominated by major Chinese investors, including Zhejiang Huayou Cobalt, Sinomine Resource Group, Chengxin Lithium Group, Sichuan Yahua Industrial Group, and Tsingshan Holding Group, all of which have invested heavily in Zimbabwe's mining and downstream lithium processing projects. SMM Analysis: Zimbabwe is accelerating its transition from a lithium concentrate exporter to a battery materials producer through export restrictions and mandatory local beneficiation. While near-term concentrate exports may remain constrained, expanding domestic conversion capacity is expected to increase exports of higher-value lithium chemicals, reinforcing Zimbabwe's strategic role in the global EV battery supply chain.

In Q2 2026, Mineral Resources reported lithium concentrate production of 177,000 tonnes on an equity basis (142,000 tonnes in SC6 equivalent), with sales of 195,000 tonnes (158,000 tonnes SC6 equivalent). The average realised price was US$2,425/t (CIF, SC6 basis), and unit revenue was A$2,785/t. For Wodgina (50% equity), production was 94,000 tonnes (83,000 tonnes SC6), sales 100,000 tonnes (91,000 tonnes SC6), average price US$2,450/t, and SC6 FOB cost A$714/t (down 11% QoQ). All three processing lines are expected to be fully operational in Q3, with Stage 4 pre‑stripping starting concurrently. At Mt Marion (production at 50%, sales at 51%), output was 82,000 tonnes (59,000 tonnes SC6), sales 94,000 tonnes (67,000 tonnes SC6), average price US$2,392/t, and cost A$878/t. The company plans to invest A$490 million in a flotation plant and underground mine development; Macmahon has been awarded the mining contract, and underground portal preparation at the North and Central pits commenced in July. Bald Hill resumed operations in May, mining 15,000 tonnes of ore and producing about 1,000 tonnes of concentrate in Q2, with first shipments completed in July; it is expected to reach full capacity of 140,000 tonnes SC6 per annum by Q4, while studying expansion options.

South Africa’s International Trade Administration Commission (ITAC) has proposed expanding the country’s automotive incentive framework to include minerals used in electric-vehicle battery manufacturing, supporting deeper localisation of the domestic automotive and battery-material supply chains. Under the proposal, the existing list of eligible standard materials including aluminium, steel and platinum-group metals would be expanded to cover lithium, graphite, cobalt, copper, iron and rare earths. Eligible materials would need to originate from member states of the Southern African Customs Union (SACU) or Southern African Development Community (SADC). The proposed framework would recognise 50% of the value of qualifying EV battery materials as local content, potentially improving producers’ eligibility for automotive-sector incentives. The policy aligns with the South African Automotive Master Plan 2035, which aims to increase vehicle production, local content and investment as the industry transitions toward electric mobility. Stakeholders were given four weeks from the notice date to submit comments, meaning the final scope and implementation schedule remain subject to consultation. SMM comments: The proposal represents a demand-side approach to developing Africa’s battery supply chain, contrasting with Zimbabwe’s supply side policy of restricting concentrate exports to force domestic processing. If implemented, South Africa could emerge as a regional battery material processing or manufacturing hub sourcing feedstock from neighbouring SADC producers, including Zimbabwe and Namibia. However, the near-term impact on regional lithium trade flows is likely to be limited. Major Zimbabwean lithium assets including Arcadia, Bikita and Sabi Star are controlled by Chinese companies with established China-linked processing and offtake arrangements. It also remains unclear whether spodumene concentrate would qualify directly as an eligible battery material or whether further conversion into lithium sulphate, carbonate or hydroxide would be required. The final rules should therefore be monitored alongside Zimbabwe’s planned January 2027 lithium concentrate export deadline, as the two policies could influence future investment and trade flows within Southern Africa.