Zimbabwe Advances Lithium Value Addition with Third Sulphate Plant Under Construction
Zimbabwe Begins Construction of Third Lithium Sulphate Plant as Export Ban Drives Global Price Surge
Construction has begun on another lithium sulphate plant in Zimbabwe, as the country accelerates its push to move up the battery minerals value chain amid strong global demand.
Chinese group Sichuan Yahua Industrial Group Co. announced on the Shenzhen Stock Exchange platform that it has started building a lithium sulphate processing plant linked to its Kamativi lithium mine, which it operates through a joint venture with the Zimbabwean government.
The project marks the third lithium sulphate plant currently under development in the country.
Expanding Domestic Processing Capacity
Earlier this month, Zimbabwe prepared to inaugurate what has been described as Africa’s first lithium sulphate plant. That facility is being developed by Prospect Lithium Zimbabwe (PLZ), the country’s largest lithium producer, and financed by Zhejiang Huayou Cobalt Co..
These investments align with Zimbabwe’s strategy to expand domestic processing capacity and reduce reliance on exports of raw or semi-processed lithium.
Export Restrictions and Policy Shift
Zimbabwe recently suspended the export of raw lithium and other unprocessed minerals, reinforcing its industrialisation agenda.
The Ministry of Mines said the measure was taken in the national interest and called on industry players to cooperate.
The policy shift follows earlier plans announced in 2025 to ban exports of lithium concentrates from January 2027. Mines Minister Winston Chitando stated at the time that prohibiting concentrate exports would strengthen local value addition and stimulate downstream investment.
The ministry has also indicated it will tighten export procedures in response to continued malpractice in mineral shipments, according to correspondence sent to the Chamber of Mines of Zimbabwe.
Market Reaction
Zimbabwe’s export restrictions triggered immediate market reactions. On the Guangzhou Futures Exchange, the most actively traded lithium carbonate contract rose 6.07% to 178,020 yuan ($26,043) per metric tonne, after earlier surging more than 9% to 187,700 yuan.
The price movement reflects Zimbabwe’s growing influence in global lithium supply. The country has rapidly emerged as a key African producer, attracting significant Chinese investment in mining and processing infrastructure.
Strategic Implications
By shifting from concentrate exports to higher-value lithium sulphate production, Zimbabwe aims to capture more revenue domestically, create skilled jobs and deepen its integration into global battery supply chains.
As additional sulphate plants come online, the country’s transition from raw material exporter to processor of battery-grade intermediates could significantly reshape its role in the global lithium market.
