Zimbabwe, China Launch $270 Million Lithium Plant Project to Power Future EV Demand

by Oluwatosin Alabi

KEY POINTS


  • Zimbabwe’s Kuvimba Mining House is partnering with unnamed Chinese firms on a $270 million lithium plant, set to begin construction in late 2025.

  • The Sandawana plant will process 600,000 metric tons of ore annually and could come online just as global lithium prices are expected to rebound.

  • A national export ban on lithium concentrates starting 2027 underscores Zimbabwe’s push toward local value addition and industrial growth.


Zimbabwe has taken a significant leap in its energy and mining future with the announcement of a $270 million lithium concentrator at the Sandawana mine. The ambitious project, spearheaded by the state-owned Kuvimba Mining House, is set to break ground in the third quarter of 2025 and is projected for commissioning by early 2027.

The plant is being developed in strategic collaboration with two Chinese metals firms, whose names remain confidential due to ongoing negotiations. These partners will build and operate the plant for an initial period of five years before transferring full ownership to Kuvimba.

According to Kuvimba CEO Trevor Barnard, the facility is designed to process 600,000 metric tons of lithium ore annually, marking a significant expansion in Zimbabwe’s lithium processing capacity.

“We are still finalising the last few agreements that we need to put in place and making sure we have all the necessary and compatible industry conditions for our partner to start construction,” Barnard said.
“We are looking at breaking ground in the third quarter,” he added.

China’s growing stake in Zimbabwe’s lithium sector

The investment reflects a broader pattern of increasing Chinese investment in Zimbabwe’s critical minerals, particularly lithium — a key material in electric vehicle (EV) batteries and renewable energy storage.

Although global lithium prices have slumped by nearly 90% due to oversupply and sluggish EV demand, Chinese companies continue to secure access to feedstock across Africa. According to CRU Group data, Zimbabwe supplied about 14% of China’s lithium imports in 2024.

Barnard remains optimistic, noting that timing is on their side. “Our forecast is that lithium prices will recover sometime in the year 2027, right at a point in time when we expect the concentration plant to be in production,” he said.

The expected resurgence in EV demand and recent production cuts may tighten market supply, creating favorable conditions for the plant’s launch.

To further deepen local beneficiation, Zimbabwe’s government recently announced that exports of raw lithium concentrates will be banned starting January 2027. This policy move, part of a broader strategy to stimulate industrialisation, aims to ensure that more of the mineral’s economic value is retained within the country.

Historically, Chinese firms have exported raw lithium concentrates from Zimbabwe to be refined abroad. Now, with the government’s directive and new infrastructure coming online, Zimbabwe aims to reverse this trend. Two additional lithium sulphate plants are already under construction — one by Sinomine Resource Group at Bikita Minerals and another by Zhejiang Huayou Cobalt at Prospect Lithium Zimbabwe.

Barnard described the Sandawana project as a “landmark investment” that aligns with Zimbabwe’s national development strategy.

“This is about more than just mining. It’s about transforming Zimbabwe’s place in the global lithium supply chain,” he said.

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