Zimbabwe begins construction of lithium processing plant to ban raw exports

Mutapa Energy Resources, a state-owned mining company, has started land clearing for a lithium processing plant in Sandawana, Zimbabwe.

The project aims to help the government enforce a ban on the export of raw lithium ore and concentrate to ensure the mineral is processed within the country. The Zimbabwean government initially announced a ban on raw lithium exports in February to secure control over minerals essential for the energy transition.

After a brief moratorium and a period of resumed exports in April, the government plans to reinstate the export restrictions in January 2027. This move primarily affects Chinese companies, which currently receive 90 percent of Zimbabwe's mineral exports for processing. The Sandawana project is expected to cost up to 330 million USD and will have the capacity to process three million tons of ore annually.

A consortium of investors, including Chinese partners, is funding the project following a previous attempt that failed due to a lack of capital. While the state mining company has not disclosed specific funding commitments, the project is critical for meeting the 2027 deadline. Other lithium processing facilities are also under development in the region. Prospect Lithium Zimbabwe, owned by Zhejiang Huayou Cobalt, completed a 400 million USD lithium sulfate factory in Arcadia.

Additionally, Sinomine and Yahua are constructing facilities in Bikita and Kamativi, respectively. The government also intends to adjust export processes to address concerns regarding tax evasion and smuggling.