- Plans are advancing to process more lithium locally before a 2027 ban on concentrate exports.
- Companies have invested heavily in new processing plants as the country pushes for value addition.
- Success will depend on power supply, financing, and stable global lithium prices.
PLANS are advancing to process more lithium domestically ahead of a 2027 ban on concentrate exports, as policymakers push to capture more value from the battery metals boom.
This policy is part of a bigger plan to enhance the country’s position in the battery minerals market and cut down on the export of semi-processed materials. Then Mines Minister Winston Chitando mentioned that from January 2027, all lithium concentrate exports will be banned due to the growing local processing capacity.
In 2022, Zimbabwe already banned the export of unprocessed lithium ore, marking the first step towards adding value to its resources. The 2027 deadline will extend this ban to concentrates, allowing only more refined products to be exported.
Processing capacity expands
As Africa’s largest lithium producer, Zimbabwe is also one of the fastest-growing in the world. Since 2021, Chinese companies like Zhejiang Huayou Cobalt and Sinomine Resource Group have invested over $1 billion in lithium projects, according to company reports.
Huayou is building a lithium sulphate plant at its Arcadia site near Harare. Henry Zhu, the general manager of Prospect Lithium Zimbabwe, told reporters that the plant is expected to produce over 60,000 metric tonnes of lithium sulphate each year once it’s up and running.
Sinomine’s Bikita Minerals has also upgraded its processing facilities in Masvingo province, turning spodumene concentrate into more valuable materials. The rise of new plants around Harare and Masvingo shows their closeness to existing mining operations and transport links.
The lithium sector is becoming an important source of export income, but price swings make planning tricky. Zimbabwe’s exports of spodumene concentrate exceeded one million metric tons in 2025, even though global prices were on the decline.
Lithium prices hit all-time highs in 2022 but dropped sharply in 2023 and 2024 due to oversupply. Experts warn that this downturn highlights the dangers of depending only on raw exports.
“A focus on value addition is essential if resource-rich countries want to achieve lasting economic benefits,” said a mining analyst from the Zimbabwe Chamber of Mines, discussing wider debates on beneficiation policies.
Economic experts note that while lithium is a small part of Zimbabwe’s mining output, it is growing, with gold and platinum still leading the way. The World Bank has pointed out that mining contributes over 10% to Zimbabwe’s GDP and more than 60% of export earnings, showing how vital the sector is for public finances.
Power, finance and market risks
The government believes that local processing will create industrial jobs and help keep foreign currency. Officials also argue that beneficiation boosts bargaining power in global supply chains, which are increasingly influenced by geopolitical tensions.
However, this transition comes with its own set of challenges.
Zimbabwe is still grappling with electricity shortages, producing only about half of its peak national demand. In response, mining companies are building solar plants and securing private power agreements to ensure production continues.
Financing and technology transfer are other hurdles. Setting up processing plants requires more investment and expertise than just mining operations.
Environmental oversight is also crucial. Lithium processing creates tailings and chemical waste that need to be managed according to Zimbabwe’s environmental laws, which are enforced by the Environmental Management Agency.
Local communities near processing plants are hoping for job opportunities and better infrastructure. Industry groups believe that engaging with the community and investing in social programs will be key to keeping their social licence to operate.
Global market trends will influence the results. The International Energy Agency expects lithium demand to keep growing as more people adopt electric vehicles, but increased supply from Australia, South America, and Africa has caused price fluctuations.
Analysts suggest that Zimbabwe’s approach relies on timing.
If global prices stabilise and local processing facilities are ready before 2027, the country could boost its export earnings per tonne. However, if the markets weaken again or infrastructure issues remain, profit margins might shrink.
