Tanzania’s Strategic Initiatives and Private Investment Boost Lithium Market

Tanzania is enhancing its position in the lithium market via government initiatives and international investments. A 2023 export ban on raw lithium boosts downstream investment, while the Tanzania Critical and Strategic Mineral Strategy and partnerships with global agencies promote exploration. International mining firms are significantly involved, as highlighted by upcoming events like African Mining Week, aimed at connecting projects with investors.

Tanzania is enhancing its role in the global lithium market through a combination of proactive government initiatives and significant investments from international exploration and production companies. Following a 2023 ban on the export of raw lithium, aimed at promoting downstream investments, the country has seen a notable increase in investment activities, laying the groundwork for various projects.

To attract further investment in the lithium and critical minerals sector, the Tanzanian government has implemented several strategic programs. Notably, the Tanzania Critical and Strategic Mineral Strategy was introduced in late 2024, currently in the stakeholder consultation phase, focusing on optimizing resource management for lithium via exploration, mining, local processing, and effective supply chain management.

In October 2024, the Geological Survey of Tanzania announced a TZS 73 billion High-Resolution Airborne Geophysical Survey, a nationwide initiative aimed at mapping mineral resources, including lithium. As less than 20% of the nation has been previously surveyed, this program seeks to establish up to 50% coverage by 2030, thereby facilitating future investments and exploration activities.

Additionally, a partnership formed in September 2024 with the Minerals Security Partnership, consisting of 14 Western nations and the European Commission, aims to enhance financing access, exchange technical knowledge, and fortify supply chains for essential minerals like lithium and graphite. These strategic initiatives are expected to stimulate investment in the entire lithium value chain.

The involvement of the private sector is also intensifying, as several international mining companies pursue lithium exploration and production in Tanzania. In July 2024, Australian firm AustChina concluded exploration on high-priority targets revealing high-grade lithium deposits. Furthermore, Titanium Lithium from Dubai identified lithium-bearing minerals at its Titan 1 and Titan 2 projects in April 2024, while U.S.-based CGrowth Capital uncovered lithium deposits in Tanzania’s Dodoma Region.

The forthcoming African Mining Week will serve as a vital platform for connecting Tanzanian lithium projects with potential investors. This event will showcase opportunities across Tanzania and the broader African lithium value chain. African Mining Week will be held in conjunction with the African Energy Week: Invest in African Energies 2025 conference from October 1-3 in Cape Town, providing sponsors and exhibitors a chance to engage with key industry players.

This strategic approach by Tanzania, incorporating government backing and private sector involvement, is expected to solidify its position in the global lithium market, inviting further investment and promoting sustainable resource management for the future.

In summary, Tanzania is strengthening its position in the lithium market through government initiatives and substantial international investments. The implementation of the Tanzania Critical and Strategic Mineral Strategy, the nationwide geophysical survey, and the partnership with the Minerals Security Partnership underscore the nation’s commitment to enhancing its critical minerals sector. The increasing participation of private companies further affirms Tanzania’s potential in the global lithium value chain.

Original Source: www.zawya.com