(Ecofin Agency) - Zimbabwe is Africa's top producer of lithium. Despite falling lithium prices, the country keeps attracting foreign investments in its lithium sector.

On July 18, the state-owned company Kuvimba Mining announced a $310 million deal to build a lithium concentrator within 18 months. The project is supported by a group of British and Chinese investors, which remain unknown. The concentrator is expected to produce 600,000 tonnes of lithium concentrate each year at the Sandawana mine. The facility will help boost Zimbabwe’s lithium output.

In the past three years, Zimbabwe has attracted over a billion dollars in investments, mainly from Chinese firms, to develop its lithium resources. However, lithium processing in Zimbabwe remains embryonic, even though the government wants to produce lithium batteries at home. Last May, without providing further details, Harare said it received plans from four companies looking to process lithium concentrate locally.

Global lithium prices have dropped significantly over the past year because supply is growing faster than demand. The trend could affect revenue for lithium projects in Africa. While Zimbabwe remains the continent’s leading producer, other countries like Mali and Ghana are also working on their first lithium mines.