Zimbabwe has softened its requirements for lithium miners to process the mineral locally, a government official said on Thursday, as the industry battles to survive a price slump over the past year.

Africa's top lithium producer, Zimbabwe had last year given producers up to March 2024 to submit plans of how they would produce battery-grade lithium in the impoverished southern African country.

Prices of lithium, which is mainly used in battery technologies, have fallen more than 80% in the past year largely due to overproduction from China and a drop in demand for electric vehicles.

The price collapse has forced companies like Chinese battery giant CATL to suspend production at certain mines. Albemarle, the world's top lithium miner, implemented a second round of cost cuts earlier this year and laid off workers.

In Zimbabwe, lithium miners including Sinomine Resource Group's Bikita Minerals, have been forced to cut production and lay off workers as the impact of weak prices has been compounded by the country's poor infrastructure, currency volatility and policy inconsistencies.

The Zimbabwe government would now take a measured approach in its quest to localise lithium processing, deputy mines minister Polite Kambamura told Reuters.

"We are now considering them on a case by case basis and also considering the level of investments already put in the country," Kambamura said.

Chinese firms including Sinomine, Zhejiang Huayou Cobalt, Chengxin Lithium Group, Yahua Group and Canmax Technologies have spent more than $1-billion over the past three years to acquire and develop lithium projects in Zimbabwe.

"Some commenced mining operations five months before the deadline, so we are considering where the project is," he added.

Sinomine has said it plans to spend up to $500-million building a lithium sulphate plant at Bikita within the next five years.

Huayou has said it is conducting feasibility studies for a lithium sulphate plant at its Arcadia mine.

Kambamura said the government was open to dialogue with lithium miners over their struggles.

"We understand the prices are low but they are beginning to firm up. The fact that there are upcoming projects means the environment is favourable," he added.