Zimbabwe sits on some of the world’s fastest-growing reserves of lithium, a mineral that has moved from niche industrial input to strategic commodity in the global energy transition. Over the past five years, Chinese-backed investment has turned the country into a key supplier of spodumene ore for electric vehicle batteries, but most of that value has still been captured offshore through refining and manufacturing in Asia. Now, as lithium prices retreat from their 2022 peaks and governments tighten rules on raw mineral exports, Harare is trying to force a shift up the value chain before the current investment cycle cools.
Zimbabwe is moving closer to its long-held goal of processing more of its mineral wealth at home rather than exporting raw materials, with Chinese mining giant Zhejiang Huayou Cobalt planning to build a lithium carbonate plant in the country, according to Zimbabwe’s mines minister.
The proposed facility would mark another step in the southern African nation’s effort to climb higher up the electric vehicle battery supply chain, as governments across Africa seek to capture more value from the minerals fueling the global energy transition.
Zimbabwe has emerged as one of the world’s fastest-growing lithium producers after a wave of Chinese investment transformed the country into a major source of lithium ore used in rechargeable batteries. Yet much of that material continues to be exported for processing abroad, limiting the economic benefits that remain in the country.
“They will be producing lithium carbonate, which is more valued,” Mines Minister Polite Kambamura told reporters in Harare. “So we look forward to firming up of metal prices globally, and also to increase our export revenues.”
Lithium carbonate is a refined chemical product used in battery manufacturing and commands significantly higher prices than unprocessed spodumene concentrate, the form in which much of Zimbabwe’s lithium is currently exported.
The announcement comes as Zimbabwe intensifies efforts to develop a domestic battery minerals industry. In recent years, authorities have banned the export of raw lithium ore and pressured mining companies to invest in local processing facilities, arguing that exporting unprocessed minerals deprives the country of jobs, tax revenue and industrial development.
China has become the dominant foreign investor in Zimbabwe’s lithium sector. Companies including Huayou Cobalt, Sinomine Resource Group, Chengxin Lithium Group and Canmax Technologies have collectively invested well over $1 billion in lithium projects across the country over the past several years, acquiring and expanding mines as global demand for electric vehicle batteries surged.
Huayou already owns the Arcadia lithium mine near Harare, one of Africa’s largest hard-rock lithium deposits. The company acquired the project in 2022 through a $422 million takeover and has since expanded production to serve battery manufacturers in China and other markets.
Zimbabwe accounted for about 10% of global mined lithium production last year, according to the U.S. Geological Survey, making it Africa’s largest producer of the metal and one of the world’s top suppliers. Global lithium demand has increased more than fivefold over the past decade, driven largely by the rapid adoption of electric vehicles and energy storage systems.
Still, the industry has faced headwinds. Lithium prices have fallen sharply from record highs reached in 2022 as slower-than-expected electric vehicle sales growth and increased supply from major producing countries including Australia, Chile and China created a market surplus. The downturn has squeezed miners worldwide and delayed some expansion projects.
Zimbabwean officials remain optimistic that demand will recover as governments continue to push for decarbonization and electrification.
The country’s mining sector is expected to generate as much as $7 billion in revenue this year after producing $2 billion during the first half, Kambamura said.
“We are looking forward to this being anchored by the export receipts from minerals such as gold,” said Kambamura.
Mining remains the backbone of Zimbabwe’s economy, accounting for more than three-quarters of export earnings. Gold is currently the country’s largest foreign currency earner, but policymakers increasingly view lithium as a strategic mineral that could help drive future growth if more processing and manufacturing can be retained domestically.
The challenge facing Zimbabwe mirrors a broader debate across resource-rich African nations. Countries that supply critical minerals for batteries, renewable energy technologies and advanced electronics are seeking a greater share of the profits generated by those industries, rather than remaining exporters of raw materials while higher-value processing takes place elsewhere.
For Zimbabwe, the planned lithium carbonate plant would represent one of the clearest signs yet that those ambitions are beginning to take shape.
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Faustine Ngila is the AI Editor at Impact Newswire, based in Nairobi, Kenya. He is an award-winning journalist specializing in artificial intelligence, blockchain, and emerging technologies.
He previously worked as a global technology reporter at Quartz in New York and Digital Frontier in London, where he covered innovation, startups, and the global digital economy.
With years of experience reporting on cutting-edge technologies, Faustine focuses on AI developments, industry trends, and the impact of technology on society.
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