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    Zimbabwe Teams Up with Chinese Companies for $270 Million Lithium Plant Project

    Zimbabwe’s state-owned mining giant, Kuvimba Mining House, is preparing to break ground on a $270 million lithium concentrator at its Sandawana mine in the third quarter of 2025. 

    The ambitious project, slated for completion in early 2027, will be executed in partnership with two prominent Chinese metals firms.

    The facility is expected to process 600,000 metric tons of lithium ore annually. Under the terms of the partnership, the Chinese companies will develop and operate the concentrator for five years before transferring ownership to Kuvimba. 

    While the names of the Chinese partners have not been publicly disclosed, CEO Trevor Barnard confirmed that final agreements are in progress.

    “We’re finalising key agreements and ensuring the operating environment is right for construction to begin,” Barnard stated. “Our goal is to start work in Q3.”

    Related: Zimbabwe’s Gold and Forex Reserves Backing ZiG Reach Record High

    Despite a nearly 90% drop in lithium spot prices due to oversupply and sluggish electric vehicle demand, a Reuters report reveals that Chinese firms continue to invest heavily in Zimbabwe’s lithium sector—aiming to secure raw material for their domestic supply chains. 

    In 2024, Zimbabwe accounted for around 14% of China’s lithium imports, according to CRU Group.

    Industry analysts anticipate a market rebound, driven by production cuts and a recovery in EV sales. 

    Barnard remains optimistic saying: “We expect lithium prices to bounce back around 2027, aligning with the commissioning of our plant.”

    Zimbabwe, the continent’s leading lithium producer, recently announced a ban on lithium concentrate exports starting January 2027 to encourage local value addition. 

    In line with this policy, two lithium sulphate processing facilities are under development—one at Bikita Minerals, owned by China’s Sinomine Resource Group, and the other at Prospect Lithium Zimbabwe, operated by Zhejiang Huayou Cobalt.

    Beyond Zimbabwe, the lithium boom is spreading across Africa, with countries like Namibia, Mali, Ghana, and the DRC ramping up exploration and development in a bid to capitalize on the growing global demand for the battery metal.

    Image Credit: Business Insider Africa

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