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Zimbabwe Opens $400M Lithium Processing Plant to Boost EV Supply Chain

Zimbabwe Opens $400M Lithium Processing Plant to Boost EV Supply Chain

Zimbabwe’s government has inaugurated its first lithium processing facility, a move described as strategically significant in the country’s effort to reduce raw mineral exports and strengthen its position in the global supply chain for electric vehicles through higher value-added production.

The infrastructure, valued at US$400 million, is located in Goromonzi district, approximately 30 kilometres east of Harare, and was constructed by Prospect Lithium Zimbabwe (PLZ), a subsidiary of Chinese company Zhejiang Huayou Cobalt.

The facility converts hard-rock lithium ore into lithium sulphate, an intermediate product essential for manufacturing battery-grade lithium hydroxide and lithium carbonate used in electric vehicles and renewable energy storage systems.

Zimbabwe’s Ministry of Mines stated that this is the first lithium sulphate processing plant on the African continent, representing a shift in the country’s strategy away from raw material exports and toward the domestic development of mineral processing and chemical industries.

The inauguration follows a series of measures adopted by the government to increase local processing of mineral resources. In February, authorities suspended exports of raw lithium ore ahead of a national ban scheduled to take effect in 2027, which will require mining companies to process minerals within the country.

Zimbabwe, which holds Africa’s largest lithium reserves and ranks among the world’s leading producers of the mineral — a strategic input for the global energy transition — expects the new policy to retain greater economic value, create skilled employment, and reduce exposure to international commodity price volatility.

Authorities in Harare also stated that the country intends to further develop its battery minerals industry, advancing toward domestic production of battery-grade lithium carbonate and, subsequently, into the manufacture of solar panels and rechargeable batteries.

The focus on local lithium processing forms part of Zimbabwe’s broader strategy to transform its mineral resources into complete industrial value chains, capitalising on rising global demand for raw materials used in electric mobility and renewable energy.

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Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/2026/07/29/mundo/africa/zimbabue-governo-inaugura-fabrica-de-400-m-para-impulsionar-producao-de-litio/

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