Investors operating lithium mines in Zimbabwe have committed close to US$1 billion towards processing plants since the country tightened restrictions on raw mineral exports in February, the Zimbabwe Independent can reveal.
It is a major boost to Harare’s ambitions to become a regional battery manufacturing hub.
The investments — largely driven by Chinese firms — come as Zimbabwe, Africa’s biggest lithium producer, pushes an aggressive beneficiation strategy aimed at ending raw mineral exports and capturing more value from the fast-growing global electric vehicle supply chain.
A position paper prepared by the Ministry of Mines and Mining Development, seen by the Independent, shows that China-based Huayou’s Prospect Lithium Zimbabwe and Sinomine’s Bikita Minerals have committed about US$700 million and US$500 million respectively towards lithium sulphate processing plants.
The paper says the investments are part of broader commitments by six of the country’s largest lithium producers to establish beneficiation facilities before January 2027, when Zimbabwe plans to ban lithium concentrate exports entirely.
“The major investors — in particular our Chinese partners, who dominate the lithium sub-sector — have responded by committing very substantial capital to in-country processing,” the paper reads.
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“Huayou (Prospect Lithium Zimbabwe) has invested approximately US$400 million in the Arcadia lithium sulphate plant, in addition to an earlier concentrator investment of around US$300 million.
“Sinomine (Bikita Minerals) has built a lithium sulphate plant valued at approximately US$500 million, with a fresh capital-raising programme announced in May 2026 to fund this and related projects.”
The government says the investment surge demonstrates that its hardline export controls are beginning to yield results, despite fierce resistance from miners over high processing costs and infrastructure bottlenecks.
“Taken together, this represents close to US$1 billion in domestic lithium-processing infrastructure,” the paper says.
“Miners did, understandably, raise legitimate concerns in the early stages around the high capital cost of processing plants, electricity supply, water requirements and broader infrastructure constraints, and some requested more time before the introduction of the concentrate export levy.
“Government engaged constructively on these matters, but maintained the strategic line through export controls, producer-specific quotas, fiscal measures and, ultimately, a binding legal compliance regime. The investment now on the ground is proof that the policy is working.”
Zimbabwe first banned the export of raw lithium ore in 2022 as part of efforts to promote value addition and curb rampant smuggling.
However, after negotiations with mining companies, authorities partially relaxed the restrictions by allowing controlled exports of lithium concentrates under producer-specific quotas valid until January 2027.
The ministry paper outlines a phased beneficiation roadmap designed to transform Zimbabwe from a raw mineral exporter into a player in the global battery and electric vehicle industries.
“Phase 1 — Ban raw ore exports (2022): the export of raw lithium ore was prohibited, ending the era of shipping out unprocessed rock,” the paper reads.
“Phase 2 — Transitional concentrate phase: concentrate exports were permitted while processing plants were built, but under producer-specific export quotas and an export levy, not as an open-ended entitlement.”
The paper says government further tightened controls in February this year after concerns over under-declaration of exports and revenue leakages.
“Phase 3 — Binding commitments and enforcement (2025–2026): six approved producers gave written commitments to have operational lithium sulphate or lithium carbonate plants by January 1, 2027.
“On February 26, 2026, government tightened enforcement against the export of unprocessed minerals and concentrate, citing under-declaration and revenue leakage.
In 2026, beneficiation was codified into law, with a mandatory Value-Added Compliance Certificate — without which no export permit may be issued.”
From January 1, 2027, lithium concentrate exports will no longer be allowed.
“Thereafter, only lithium salts — sulphate and, progressively, battery-grade carbonate and hydroxide — may be exported,” the paper says.
Authorities say the long-term objective is to move beyond basic processing into battery chemicals, precursor materials and, eventually, electric vehicle manufacturing.
“Phase 5” of the strategy envisages “progression from sulphate to refined battery-grade chemicals, then to precursor and cathode materials, and ultimately toward battery and electric vehicle manufacturing”.
Zimbabwe holds Africa’s largest lithium reserves and has rapidly emerged as a strategic supplier to China, the world’s biggest consumer of the mineral, which is critical in electric vehicle battery production.
The country’s major lithium operations — many of them Chinese-owned — include Bikita Minerals, Arcadia, Zulu Lithium, Sabi Star Lithium Mine and Kamativi Lithium.
Zimbabwe’s raw lithium exports surged from about US$7 million in 2020 to nearly US$600 million within a few years, driven largely by Chinese demand linked to the booming global electric vehicle market.