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Zimbabwe to Launch USD 270 mn Lithium Processing Plant in 2025 with Chinese Partners

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Zimbabwe’s state-owned Kuvimba Mining House is gearing up to commence construction of a USD 270 million lithium concentrator at its Sandawana mine in the third quarter of 2025, a move aimed at significantly boosting the country’s lithium processing capacity. The announcement was made by Kuvimba CEO Trevor Barnard, who noted that the plant is expected to be commissioned in early 2027.

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Zimbabwe’s state-owned Kuvimba Mining House is gearing up to commence construction of a USD 270 million lithium concentrator at its Sandawana mine in the third quarter of 2025, a move aimed at significantly boosting the country’s lithium processing capacity. The announcement was made by Kuvimba CEO Trevor Barnard, who noted that the plant is expected to be commissioned in early 2027.

The project is being developed in partnership with two major Chinese metals companies, whose identities remain undisclosed due to ongoing negotiations. Under the terms of the partnership, the Chinese firms will be responsible for both the construction and operation of the facility for a minimum of five years, after which the plant will be handed over to Kuvimba. “We are still finalising the last few agreements and ensuring all industry conditions are in place before construction begins,” said Barnard. “We are looking at breaking ground in the third quarter.”

Designed to process 600,000 metric tons of lithium ore annually, the Sandawana lithium concentrator is expected to come online just as the global lithium market begins to recover. Lithium prices have plummeted nearly 90% over the past year due to oversupply and weaker-than-anticipated electric vehicle (EV) demand, but industry analysts predict a turnaround.

Recent production cuts and a rebound in EV sales in China are anticipated to create tighter market conditions, potentially leading to a price recovery. According to Barnard, the commissioning of the Sandawana plant in 2027 may coincide perfectly with this anticipated upswing. “Our forecast is that lithium prices will recover sometime in 2027, which is exactly when we expect to begin production,” he said.

Zimbabwe, Africa’s top lithium producer, is taking bold steps to add value locally and reduce raw mineral exports. The government recently announced a ban on lithium concentrate exports starting January 2027, reinforcing its industrialisation agenda and encouraging domestic processing and manufacturing.For years, Chinese companies operating in Zimbabwe have exported unprocessed lithium concentrates to China, bypassing local beneficiation. The new policy marks a shift aimed at increasing downstream benefits for the Zimbabwean economy.

Currently, two lithium sulphate processing plants are under development in the country: one at Bikita Minerals, owned by China’s Sinomine Resource Group, and another at Prospect Lithium Zimbabwe, operated by Zhejiang Huayou Cobalt. The lithium boom is not limited to Zimbabwe. Countries across Africa—including Namibia, Mali, Ghana, and the Democratic Republic of the Congo (DRC)—are ramping up exploration and mining activities to tap into growing global demand.

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https://trendsnafrica.com/zimbabwe-lithium-mines-attract-chinese-investment/

Zimbabwe alone supplied around 14% of China’s lithium imports in the past year, according to data from the CRU Group, highlighting its strategic importance in the global lithium supply chain.As global demand for electric vehicles and renewable energy storage increases, Zimbabwe’s investment in local lithium processing infrastructure, backed by strategic international partnerships, positions it as a key player in the evolving battery metals landscape.