An employee works at a lithium battery manufacturing enterprise in Huaibei in China. Lithium prices have nearly doubled since November as demand for the mineral booms from growth in energy storage.

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Lithium prices and shares surged after Zimbabwe, one of the world’s top producers, suspended concentrate exports, fueling fears that global supplies of the battery ingredient will tighten.

Lithium carbonate on the Guangzhou Futures Exchange rallied 5.4% to 177 000 yuan (R412 000) a ton on Friday. Shares of lithium producers from China to Australia and the Americas also jumped.

Zimbabwe halted exports of lithium concentrate from Wednesday, in a move that would promote domestic processing and curtail illegal shipments. The ban is in effect until further notice, said Mines Minister Polite Kambamura. Export authorizations will only be forthcoming to companies holding valid mining licenses and approved processing capacity, the minister said in a statement.

The African nation accounted for about 10% of the world’s mined lithium last year, according to the US Geological Survey. Exports of lithium sulphate, an intermediate product, wouldn’t be affected by the new policy, Citic Securities said in a note.

“The higher lithium price and continuous illegal shipments are likely driving factors for why the overhaul is happening now,” said Cameron Hughes, an analyst at consultancy CRU Group, who likened the move to a similar ban by the Democratic Republic of Congo on cobalt exports last year.

Zimbabwe has committed to cracking down on illicit commodities trading, and introduced measures to encourage downstream processing. China’s Zhejiang Huayou Cobalt and Sinomine Resource Group are both developing projects in the country to that end.

Lithium prices have nearly doubled since November as demand for the mineral booms from growth in energy storage. The rally has been exacerbated by uncertainty over supply in one of China’s main production hubs, returning prices to levels last seen in 2023.

The market should tighten temporarily after the Zimbabwean order, according to Jefferies Financial Group. “While there were indications that Zimbabwe demands strengthened mining regulation and establishment of local supply chain/processing capacities, the step-up of concentrate export control is not entirely expected,” the bank said in a note.

Governments across the world are seeking to capture more value from their endowments of natural resources, which is creating volatility in supply chains. Congo’s surprise cobalt ban lasted for months, and was ultimately replaced with a quota system to limit exports. Indonesia has imposed controls on the supply of both nickel and coal in a bid to raise prices.

Some 19% of China’s imported lithium concentrate came from Zimbabwe last year, Citic Securities said.

Shares of China’s Tianqi Lithium climbed as much as 7.3% in Hong Kong, while Ganfeng Lithium Group advanced 5.6%. In Australia, PLS Group rose as much as 7.6% and Mineral Resources as much as 6%. In the US, Sigma Lithium closed 30% higher while Albemarle added 10%.

Hong Kong billionaire Victor Li’s CK Group has agreed to sell the UK’s largest power-distribution network, as flagship conglomerate CK Hutchison Holdings eyes asset divestments to reshape the business for a geopolitically fraught era.

Authorities in China have asked steel mills in the north to temporarily curb operations to help reduce pollution during key annual government meetings in March.

Russian and Iranian oil producers are offering deepening discounts as they compete for the same limited group of Chinese buyers after India retreated from purchases.

China is planning its first major tightening of national air quality standards since 2012, as it seeks to extend a largely successful anti-pollution campaign that’s reshaped parts of its economy.