Zimbabwe courts Chinese battery makers for local production

Zimbabwe is calling on Chinese battery manufacturers to establish production plants in the country, arguing that the key raw materials required by the industry are already being mined locally and should be processed into higher-value products domestically.

Vice President Constantino Chiwenga made the call after touring the headquarters of Huayou Cobalt and Chilwee Group in China on Wednesday as part of an investment promotion mission focused on strengthening cooperation in beneficiation, value addition and industrialisation.

Huayou Cobalt is a major global producer and refiner of battery materials, with mining operations in the Democratic Republic of Congo, Indonesia and Zimbabwe. The company operates the Arcadia lithium mine in Goromonzi through its wholly owned subsidiary, Prospect Lithium Zimbabwe.

Chiwenga said Huayou had already taken important steps towards processing Zimbabwean minerals and that discussions were now moving towards deeper value addition and battery manufacturing.

"They are into some projects, but mainly concentrating on the lithium-ion battery, which they are making and which they have shown us. And they are also into recycling — they recover 90 per cent of whatever we think is now going to waste," he said.

"We have understood each other on the way forward on beneficiation, value addition, manufacturing and industrialisation of our country. That's what we are looking at."

Huayou acquired Arcadia from Australia-listed Prospect Resources in 2022 and has invested heavily in processing facilities at the mine, including a US$300 million concentrator and a further US$400 million lithium sulphate plant.

The lithium sulphate facility has begun production, with Zimbabwe recording its first shipment of lithium sulphate in April this year. Lithium sulphate is an intermediate product that can subsequently be refined into battery-grade lithium hydroxide or lithium carbonate.

Chiwenga said engagement with Huayou would also be pursued at Government-to-Government level, with some issues potentially being elevated to Heads of State.

Following his visit to Chilwee Group, China's largest lead-acid battery manufacturer, the Vice President said Zimbabwe's mineral resources provided a strong basis for attracting battery production into the country.

"Most of the components they use are from the raw materials that we have in Zimbabwe. We see scope for great cooperation if they come to Zimbabwe, so that they can have the materials right at their doorstep," he said.

Chilwee, a Hong Kong-listed company with more than 20 000 employees, manufactures batteries for electric vehicles, e-mobility, motive power, energy storage and solar applications.

Chiwenga also highlighted the company's investment in research and development and training, saying these capabilities could contribute to the development of Zimbabwe's technical skills base.

The Vice President said attracting battery manufacturers formed part of Zimbabwe's broader strategy to accelerate industrialisation through mineral beneficiation and value addition.

The Government is seeking to move beyond exporting largely unprocessed minerals by encouraging investment in industries that can manufacture higher-value products locally.

The visits to Huayou and Chilwee formed part of Chiwenga's investment promotion mission to China, where he is leading a Government delegation seeking deeper economic and industrial cooperation with Chinese authorities and the private sector.

The mission is particularly focused on securing investment in mining-related value addition as Zimbabwe seeks to leverage its mineral resources to accelerate industrial development.

Later in the evening, Chiwenga met Zimbabwean students in China who appealed for Government assistance in facilitating the introduction of their innovations and start-ups into the Zimbabwean market.