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Zimbabwe’s only operational lithium sulphate plant says it cannot process lithium concentrate from other mining companies, raising questions about the country’s readiness to implement a nationwide ban on unprocessed lithium concentrate exports from January 2027.
Zimbabwe’s ambition to boost domestic value addition in its rapidly growing lithium industry is facing an early test, as the country’s only operational lithium sulphate processing plant says it currently lacks the capacity to treat material from third-party producers.
The development comes just months before the government is due to implement a ban on lithium concentrate exports in January 2027, a policy designed to encourage local processing, increase export earnings and create more jobs within the country.
Zimbabwe is Africa’s largest producer of lithium, a critical mineral used in the manufacture of rechargeable batteries for electric vehicles and energy storage systems.
Processing Capacity Remains Limited
The country’s only lithium sulphate facility is operated by Prospect Lithium Zimbabwe, a subsidiary of China’s Zhejiang Huayou Cobalt.
Speaking during a visit by Mines and Mining Development Minister Polite Kambamura, Mine Manager Mthokozisi Goliath said the facility was currently designed to process only ore produced from its own mining operations.
“We don’t have the capacity to process minerals from outside operations. Our concentrator plant produces around 400,000 tonnes per annum, leaving no available capacity for third-party material,” Goliath said.
He added that the sulphate processing plant was configured solely to manage production from the company’s own concentrator.
Export Ban Remains on Schedule
Despite industry concerns about insufficient domestic processing capacity, Zimbabwe’s government says it remains committed to implementing the export restrictions as planned.
Addressing stakeholders during the mine visit, Minister Kambamura reiterated that there would be no extension to the January 2027 deadline.
“The January 2027 deadline remains in place. We are not discussing any extension at this stage. We encourage all producers to work towards meeting that deadline,” the minister said.
The policy forms part of Zimbabwe’s broader mineral beneficiation strategy, which seeks to reduce exports of raw minerals while promoting domestic processing and manufacturing.
More Processing Plants Under Construction
Several mining companies are currently investing in new processing facilities to comply with the government’s policy.
Among them are:
- Bikita Minerals, owned by Sinomine Resource Group; and
- Kamativi Mining Company, the Zimbabwean subsidiary of China’s Yahua Group.
However, industry officials indicate that these facilities are unlikely to be completed before the export ban takes effect in early 2027, potentially leaving some producers without sufficient local processing options.
Chinese Investment Dominates the Sector
Chinese companies have become the dominant investors in Zimbabwe’s lithium industry, investing an estimated US$2 billion in mining and processing infrastructure since 2021.
Those investments have helped position Zimbabwe as a major supplier of lithium to the global battery manufacturing industry while reinforcing China’s leading role in securing critical mineral supply chains for electric vehicles and clean energy technologies.
Zimbabwe is seeking to capture greater value from its abundant lithium resources by encouraging domestic processing rather than exporting raw concentrate. While the policy could significantly increase industrial activity, employment and export earnings over the long term, limited processing capacity remains a major challenge. Successfully expanding local refining infrastructure will be essential if the country is to achieve its beneficiation objectives and strengthen its position in the global battery minerals value chain.
Source: Reuters
Reporting: Philimon Bulawayo.
Writing: Nelson Banya.
Editing: Jan Harvey.