As part of its long-term plan to increase domestic value addition in the lithium sector, Zimbabwe will ban the export of lithium concentrates starting in January 2027, Mines Minister Winston Chitando said Tuesday. The action comes after a 2022 prohibition on the export of raw lithium ore and continues the nation’s efforts to develop a domestic battery minerals value chain. The largest producer of lithium in Africa, which is essential for batteries used in renewable energy and electric car technology, is Zimbabwe. At a post-cabinet media briefing, Chitando informed reporters that the government’s decision coincides with the planned opening of two lithium sulphate factories at Prospect Lithium Zimbabwe and Bikita Minerals.
Because of that capacity which is now in the country, the export of all lithium concentrates will be banned from January 2027,’ he said. His remarks were reported by Reuters on Tuesday.
Chinese firms dominate local lithium processing
The minister pointed out that foreign investors, especially Chinese mining companies, are making great strides in developing the nation’s refining capabilities. Sinomine Resource Group owns Bikita Minerals, while Zhejiang Huayou Cobalt is in charge of Prospect Lithium Zimbabwe. These two businesses are a part of a larger group of Chinese businesses that have committed more than US$1 billion since 2021 to buy and develop lithium assets in Zimbabwe. These businesses include Chengxin Lithium Group, Yahua Group, and Canmax Technologies. One important intermediate product that can be further processed to create battery-grade materials like lithium hydroxide or lithium carbonate is lithium sulphate. Zimbabwe wants to boost profits from its abundant mineral resources and lessen its reliance on exports to Asian markets by setting up domestic facilities to transform lithium concentrates into these higher-value goods.
Policy shift follows price drop
Lithium producers were given until March 2024 by authorities to provide comprehensive plans for local refining in 2023. However, following a precipitous decline in lithium prices worldwide, which raised questions about the new smelters’ financial sustainability, the government briefly loosened its stance. Harare, however, is now intensifying its efforts to promote beneficiation, claiming that the long-term benefits of domestic processing outweigh the transient swings in the market. Zimbabwe is a desirable location for investors due to its vital role in the global lithium supply chain and the rising demand for battery materials worldwide. However, the government has said unequivocally that domestic value addition will be a must for future export permits and licenses.
As the country prepares for the 2027 ban, all eyes will be on the rollout and completion of the processing plants at Bikita and Prospect, which are expected to set the standard for other miners operating in the country.
