Zimbabwe enters global battery chemicals market

Zimbabwe has taken a significant step up the global lithium value chain with the commissioning of Africa's first lithium sulphate processing plant, a US$400 million investment expected to create more than 2,000 jobs while strengthening the country's drive towards mineral beneficiation and industrialisation.

The facility, established in Goromonzi District, Mashonaland East Province, by Arcadia Technology Zimbabwe (ATZ), a sister company to Prospect Lithium Zimbabwe (PLZ) under Huayou Cobalt, will process locally mined spodumene and petalite into lithium sulphate.

Lithium sulphate is a high-value intermediate chemical used in the production of lithium-ion batteries that power electric vehicles, renewable energy storage systems and other advanced technologies.

The project represents a major shift from exporting raw lithium minerals to producing value-added battery chemicals locally, in line with the government's strategy to maximise returns from Zimbabwe's mineral resources.

In a statement posted on its official X platform, the Ministry of Industry and Commerce described the investment as a landmark achievement for the country's industrialisation agenda.

"Zimbabwe is moving beyond exporting raw minerals to unlocking greater value through beneficiation and value addition. This transformative investment, valued at approximately US$400 million, represents the first lithium sulphate processing plant in Zimbabwe and on the African continent," the ministry said.

The ministry said the project is expected to create more than 2,000 jobs while promoting technology transfer, strengthening domestic supply chains, increasing export earnings and generating additional tax revenue.

"The plant is creating over 2,000 employment opportunities, facilitating technology and skills transfer, strengthening local supply chains and downstream industries, increasing export earnings and foreign currency inflows and generating additional tax revenue to support national economic growth and sustainable development," the ministry said.

It added that the investment advances Zimbabwe's mineral beneficiation agenda by converting locally mined lithium into a significantly higher-value chemical product for export.

The development places Zimbabwe among a select group of countries producing refined lithium chemicals, enhancing its position in the rapidly expanding global battery materials market.

The ministry said the project also supports the government's rural industrialisation programme by ensuring communities hosting mineral resources benefit through local processing, employment creation and broader economic development.

"Rural industrialisation is ensuring that more of our country's mineral wealth is processed at home, creating jobs, developing communities where resources are found and allowing Zimbabweans to benefit from the full value of their natural resources," the ministry said.

Industry analysts have noted that processing lithium into battery-grade chemical products enables mineral-producing countries to capture substantially greater value than exporting unprocessed concentrates.

Global demand for lithium chemicals continues to grow as countries accelerate the transition to electric vehicles, renewable energy and battery storage technologies, creating new opportunities for producers capable of supplying refined battery materials.

Zimbabwe, which hosts some of the world's largest hard-rock lithium deposits, has attracted significant investment into the sector in recent years as government prioritises value addition and domestic mineral processing.

Authorities believe beneficiation will support industrial development by increasing the value of exports, creating skilled employment, strengthening local supply chains and expanding the country's manufacturing base.

The ATZ facility is expected to become a key pillar of Zimbabwe's lithium industry as the country seeks to play a larger role in the international battery materials supply chain.

The commissioning comes as Zimbabwe positions itself for a significant increase in mineral export earnings.

Government projects total exports could reach at least US$21 billion within the next two years as value addition policies begin to bear fruit.

Zimbabwe recorded more than US$16 billion in foreign currency receipts last year, the highest since Independence and a sharp increase from the US$5.5 billion earned in 2017 before the advent of the Second Republic.

Mining remains the country's largest export sector, accounting for about 70 percent of total export earnings.

In 2025, Zimbabwe generated approximately US$3.4 billion from mineral exports excluding gold and silver, representing a 14 percent increase from the previous year.

Gold exports earned about US$4.8 billion, while lithium exports contributed US$571.6 million.

The government is accelerating beneficiation across strategic minerals, including lithium, platinum and diamonds, as part of efforts to boost export earnings, create employment, reduce dependence on raw commodity exports and deepen industrialisation.

In February, President Emmerson Mnangagwa suspended exports of lithium concentrates and other unprocessed lithium minerals to promote local value addition and improve value retention within the mining sector.

A quota system was subsequently introduced to allow limited exports during the transition period, with government indicating that exports of lithium concentrates will be phased out completely by January 2027, by which time all producers are expected to have established local processing facilities.