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Metals & Mining Theme, Non-Ferrous
June 11, 2025
By Euan Sadden
HIGHLIGHTS
Export ban targets concentrate shipments from 2027
Sulphate plants under development at two major mines
Policy aims to boost revenue from value-added products
Zimbabwe has announced plans to ban the export of lithium concentrates from 2027 to boost local refining and increase revenues from the export of refined lithium products.
Announcing the export ban during a media briefing on June 10, Mines and Mining Development Minister Winston Chitando stated that the government will only permit the export of lithium sulphides from 2027.
Lithium sulphate is an intermediate product used for battery-grade materials such as lithium hydroxide or lithium carbonate. The move builds on Zimbabwe's December 2022 decision to ban exports of unprocessed lithium ore, demonstrating the government's desire to promote the expansion of value-added production capacity within its borders.
The change in government policy comes as global demand for lithium continues to grow, fuelled by the energy transition, with battery manufacturers and automakers scrambling to establish secure and sustainable supply chains. Zimbabwe's restrictions mirror similar moves by other resource-rich nations seeking to capture more value from critical mineral exports, potentially creating supply disruptions for downstream processors who have relied on importing raw concentrates.
Zimbabwe, which holds Africa's largest lithium reserves, has emerged as a crucial actor within the lithium supply chain, with several major Chinese battery metals companies acquiring lithium mining assets within the country in recent years. Notable Chinese acquisitions include Arcadia Lithium Project, acquired by Zhejiang Huayou Cobalt for $422 million from Prospect Resources in 2021, and Bikita Lithium Mine acquired by Sinomine Resource Group.
According to the latest estimates from S&P Global Market Intelligence, Zimbabwe produced around 122,000 mt of mined lithium material in 2024, nearly doubling the level of production achieved the year before.
Chitando said lithium sulphate processing plants are currently under development at two major Zimbabwean operations: Bikita Minerals, owned by China's Sinomine, and Prospect Lithium Zimbabwe, owned by Zhejiang Huayou Cobalt. He added that the facilities will be crucial for the country's ability to meet its 2027 export restriction timeline while maintaining revenue flows from lithium sales.
The minister urged lithium producers not investing in value-added processing facilities to sign tolling agreements with companies that have the necessary processing capacity. This approach is designed to allow smaller miners to continue operating while ensuring compliance with the new export restrictions through partnerships with processors.
The policy shift reflects Zimbabwe's broader strategy to maximize revenues from its abundant mineral resources, including significant lithium deposits that have attracted substantial Chinese investment in recent years. By forcing local processing, the government hopes to create jobs, develop technical expertise, and capture a larger share of the lithium value chain as global battery demand continues to expand.
Despite robust EV sales, market fundamentals for lithium have continued to deteriorate in recent months, weighed down by excess supply and heightened trade tensions between the US and China.
Platts, part of S&P Global Commodity Insights, assessed battery-grade lithium carbonate at Yuan 61,000 ($8,489)/mt June 10 on a delivered, duty-paid China basis, down Yuan 3,400/mt from a month ago.