China-headquartered resources group Zhejiang Huayou Cobalt has moved to full control of Zimbabwe’s largest lithium operation, tightening its grip on a strategic asset at a time Harare has directed miners to process more of the mineral locally.
The firm said in its annual report for the year-ended December 31, 2025 it had acquired the remaining minority stake in Prospect Lithium Zimbabwe, taking its shareholding to 100% in a deal valued at CNY219,18 million (about US$32,11 million). The consideration exceeded book value by CNY90,47 million (US$13,26 million), signalling a premium paid to consolidate control.
The buyout completes a transaction arc that began in 2022, when Huayou snapped up an 87% stake in the asset, located about 30 kilometres east of Harare, from Australia-listed Prospect Resources for US$378 million. Since then, it has poured capital into building out downstream capacity, including a US$300 million concentrator and a US$400 million lithium sulphate plant expected to be commissioned this year.
Prospect owns Arcadia Mine, widely regarded as Zimbabwe’s largest lithium processing operation and a cornerstone of the country’s ambitions to climb the battery minerals value chain.
“During this period, the company acquired minority shareholder equity in its subsidiary Prospect Lithium, with the consideration paid exceeding the net asset share calculated based on the newly-held shareholding ratio, resulting in a corresponding decrease in capital reserve (share premium) by RMB90 471 880,90,” Huayou said.
It disclosed that 45% of its equity in Prospect has been pledged for group financing. The move reflects how global capital structures are being layered onto Zimbabwe’s mineral assets. Operationally, the group says the asset is improving. Additional exploration has lifted Arcadia’s remaining lithium carbonate equivalent resources from 1,5 million tonnes to 2,45 million tonnes, while ore grade has risen to 1,34%.
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“In Zimbabwe, through supplementary exploration, the remaining resources of the Arcadia lithium mine have increased from 1,5 million tonnes of lithium carbonate equivalent to 2,45 million tonnes, and the grade has risen to 1,34%,” Huayou said.
“The 50 000-tonne lithium sulfate project was completed and put into trial production in the first quarter of this year, realising the implementation of the integrated mining and metallurgy resource efficient utilisation model.”
The full takeover hands Huayou sweeping control over production, processing and export strategy at Arcadia, giving it a decisive advantage in a jurisdiction where policy is increasingly tilting toward beneficiation.
Recent expert reports said Zimbabwe currently earns about US$375 per tonne from raw lithium exports, compared to as much as US$20 000 if processed into battery-grade material. Authorities have responded with a ban on exports of lithium concentrates — recently partially lifted for some operators — and other raw minerals, forcing miners to invest in local value addition.
For a capital-heavy operator such as Huayou, the policy shift aligns with its integrated mining-to-chemicals model. For others, it has been far more disruptive.
Zimbabwe’s lithium sector is now splitting along a familiar fault line — well-funded multinationals on one side, cash-strapped local players on the other.
Recent reporting by the Zimbabwe Independent said domestic lithium miners mothballed operations after the shock directive halting exports of raw minerals in February. The move, designed to accelerate beneficiation and curb leakages, has triggered a liquidity squeeze across the sector.
“The directive caught miners off-guard and has jeopardised operations across the board,” the Lithium Association of Zimbabwe said at the time.
“With exports halted, the ripple effects are being felt throughout the value chain. Small-scale miners have shut down, and local cashflows have been severely disrupted.”
Industry officials say the cost of building processing infrastructure — often exceeding US$100 million — is effectively pushing smaller players into partnerships with large, capitalised firms, many of them Chinese.
Zimbabwe, now the world’s seventh-largest lithium producer, has become a critical supplier to China, the dominant global processor of battery minerals. But Harare’s aggressive push to export only battery-grade lithium by 2027 is testing the resilience of an industry already under strain.
The policy shift has also unsettled investors. In a rare move, the Chinese Embassy in Harare warned its companies to “strengthen risk prevention” and fully assess Zimbabwe’s regulatory environment before committing capital, citing policy volatility.
Meanwhile, stockpiles of lithium concentrate have been building up across mining sites as exports remain frozen, intensifying cashflow pressures. Industry players are lobbying for transitional concessions, including extended timelines and more flexible compliance terms.
Against this backdrop, Huayou’s consolidation of Arcadia looks less like a routine corporate clean-up — and more like a strategic entrenchment.
With full control now secured, the Chinese giant is better positioned to ride out policy shocks, dictate the pace of beneficiation, and lock Zimbabwe’s most valuable lithium asset deeper into global battery supply chains.