THE African Development Bank (AfDB) says Zimbabwe is well positioned to reap huge benefits from the surging global demand for minerals such as lithium, with the country ranked the fifth producer in the world.
According to United States-based financial markets website Trading Economics, lithium carbonate futures climbed past US$21 522 89 per tonne as of Friday, marking a near 30% gain since the start of the year and reaching a two-year high.
The surge reflected strong demand for power-storage technologies against an outlook of constrained supply.
In Zimbabwe, three Chinese firms control the country’s best lithium-producing mines, that is, Sinomine Resource Group Co. Ltd, Zhejiang Huayou Cobalt Company Ltd, and Suzhou TA&A Ultra Clean Technology Co. Ltd.
Sinomine operates Bikita Minerals, Huayou controls Arcadia Mine, and TA&A is invested in Premier African Minerals.
“Zimbabwe’s lithium reserves further solidify its position as a key player in the global energy transition.
“The country ranks as the fifth-largest producer of lithium ore and has the largest known deposits in Africa,” AfDB said in its recent Zimbabwe Natural Resources Country Analysis GONAT Diagnostic 2025 report.
“Projections indicate a significant increase in production capacity, from 13,000 tonnes per year (t/y) of lithium carbonate equivalent (LCE) in 2022 to approximately 192,000 t/y LCE by 2027 (CRU Group, 2023).
- BCC flights multiple tenders
- In Full: Nineteenth post-cabinet press briefing: July 05, 2022
- Byo City polishes Manica Diamonds
- Bullets shoot down Chiefs
Keep Reading
“These developments are supported by significant foreign investments, especially from Chinese companies, which have contributed about US$ 2.79 billion to mining and energy projects.”
In a push to retain more value locally, the government imposed a tiered export tax on lithium that went into effect at the beginning of the year based on the value of lithium sulphate.
This would see lithium ore attract an export tax of 10%, lithium concentrate (10%), and lithium sulphate (0%).
According to the Chamber of Mines of Zimbabwe (CoMZ) annual report for 2025, lithium concentrate output is expected to nearly double to around 3,5 million metric tonnes this year.
CoMZ attributed the increased production to lithium producers ramping up production for adequate feedstock into the lithium sulphate plants that they are currently setting up in line with agreed lithium beneficiation roadmap.
“The government has established ambitious targets for lithium production, aiming to contribute US$500 million toward the US$12 billion mining vision,” the AfDB said.
“However, reaching this target necessitates strong frameworks for managing investments, maintaining environmental sustainability, and promoting inclusive growth.”
Strong frameworks for managing investments, in particular, have been a cause for concern given that Chinese firms control Zimbabwe’s largest lithium mines, with investments worth at least US$610 million.
The current structure of lithium exports means that the government is capturing only a fraction of the mineral’s potential earnings, as Zimbabwe predominantly exports lower-value lithium concentrate rather than retaining greater value through further beneficiation into lithium carbonate.
Lithium moves through several stages before it reaches battery manufacturers.
The process begins with lithium ore, the raw rock mined from the ground, which is then processed into lithium concentrate by removing waste material and increasing lithium content.
Concentrate is the main export product from many African lithium mines but is not yet suitable for direct use in batteries.
Further processing converts concentrate into lithium chemicals, most notably lithium carbonate, a refined product that serves as a global pricing benchmark and a key input for rechargeable batteries.
Lithium sulphate is an intermediate chemical formed during processing and is later converted into carbonate or other battery-grade materials, where most of the value in the lithium supply chain is realised.
“The African Mining Market highlights that Zimbabwe’s lithium exports are positioned to meet increasing global demand for rechargeable batteries, providing an opportunity for economic diversification and sustainable development,” the AfDB said.
“The anticipated contribution of lithium to Zimbabwe's economic development and GDP (gross domestic product) underscores its strategic importance in the global energy transition.
“This projection is supported by a significant increase in production capacity, substantial foreign investment, primarily from Chinese stakeholders, and a focused effort to leverage Zimbabwe’s substantial lithium reserves to meet the growing global demand for renewable energy storage solutions.”
Zimbabwe’s lithium potential does not just stop at Sinomine, Huayou, and TA&A, as the Chinese multi-resources firm China Natural Resources Inc. (CNRI) is in the process of purchasing a lithium mine for US$1,75 billion from local miner Williams Minerals (Pvt) Ltd.
The mine is located in a mining area of 8 682 hectares situated in the mining district of Manicaland, Zimbabwe, which has 3,5 million estimated tonnes of measured, indicated, and inferred resources of lithium oxide.
“Accelerate beneficiation initiatives in lithium, platinum, and other high value minerals to capture greater value within the domestic economy,” the AfDB said.
