Chinese mining groups are expanding lithium refining projects in Zimbabwe as the country tightens export rules on raw ore.
Harare wants to shift from exporting spodumene concentrate to producing higher-value lithium sulfate locally.
The strategy could reshape Zimbabwe’s role in the global battery supply chain if miners complete planned investments.
Zimbabwe has begun to see early results from its effort to build a domestic lithium-processing industry. The sector is now attractimng growing investment in refining capacityfrom chinese mining companies.
On May 19, China’s Sinomine Resource Group said it plans to raise up to 5.2 billion yuan, or about $764 million, to finance several projects, including a lithium refinery in Zimbabwe. The announcement marks another step in Harare’s broader strategy to force more local processing of a mineral that has become central to the global electric-vehicle industry.
Zimbabwe is Africa’s largest lithium producer, but most of its output still leaves the country as spodumene concentrate, a low-value intermediate product. The government now wants mining companies to process more of that material locally into lithium sulfate, a refined chemical used in battery manufacturing and sold at significantly higher prices.
That transition has started to take shape. In April, Chinese group Zhejiang Huayou Cobalt completed what authorities described as Africa’s first exports of lithium sulfate. The shipments came months after the company opened a refinery with annual capacity of 50,000 tons at its Arcadia mine in Zimbabwe.
Sinomine now plans to follow the same path. The company said part of the new funding will speed up construction work tied to its Bikita mine. The refinery under development there is expected to produce 100,000 tons of lithium sulfate per year. Bloomberg reported the project could cost around $400 million, though Sinomine has not disclosed how much of the new financing will go directly to the plant.
Another Chinese company, Sichuan Yahua, recently launched construction work on its own lithium sulfate facility at the Kamativi mine.
Harare Tightens the Rules
The investment wave comes as Zimbabwe steadily increases pressure on miners to process lithium domestically. In February, the government imposed a ban on exports of lithium concentrates before replacing it in April with a quota system designed to control shipments while giving companies time to adapt. Authorities still plan to fully ban concentrate exports starting in January 2027.
The gradual approach reflects a broader industrial policy: keep more value inside the country instead of exporting raw materials with limited economic return.
The price gap explains why the government is taking that route. On May 20, lithium sulfate delivered to China from Africa traded at $8,751 per ton on the Shanghai Metals Market, compared with $2,595 per ton for spodumene concentrate.
Sinomine said local processing would strengthen the entire value chain, from mining and concentration to smelting and chemical treatment. The company also said refining lithium inside Zimbabwe could lower transport costs and help producers capture larger margins when lithium prices rise.
For Zimbabwe, the stakes extend beyond mining revenue. Officials see lithium processing as a way to build industrial capacity, increase export earnings, and secure a stronger position in the global battery economy.
Still, the strategy carries risks. Harare’s ambitions depend heavily on whether mining companies complete their projects on schedule and whether smaller industry players also move into refining. Among the companies under pressure to adapt is Chengxin Lithium Group, operator of the Sabi Star mine.
Zimbabwe generated about $571 million from lithium exports in 2025, according to official figures.
Aurel Sèdjro Houenou