Zimbabwe's Lithium Boom: A New Era of Value-Added Production
By Africazine
As global demand for lithium skyrockets, Zimbabwe is gearing up for a seismic shift in its lithium production landscape. The country’s lithium producers are making significant strides to transform the industry, focusing on processing and value addition in anticipation of a government ban on raw concentrate exports set to take effect in January 2027.
The vision for Zimbabwe’s lithium sector is ambitious. According to the latest 2025 Mining Sector Report from IH Securities, lithium output is expected to surge from 2.47 million tonnes in 2024 to 3.26 million tonnes by 2025. This remarkable growth is fueled by new market entrants and expansion initiatives among existing players.
Authorities are tightening beneficiation requirements, encouraging miners to enhance their operations. “Zimbabwe’s lithium sector is positioned for substantial production growth through 2025–2027, moving towards intermediate processing,” IH Securities observes. With abundant high-grade reserves and robust investment from Chinese partners, Zimbabwe is on track to establish itself as Africa’s premier lithium beneficiation hub.
Several key industry players are already stepping up to make this vision a reality. For instance, Prospect Lithium Zimbabwe is constructing a state-of-the-art lithium sulphate plant with an annual capacity of 50,000 tonnes. Meanwhile, Bikita Minerals is investing a substantial US0 million into a sulphate facility and an additional US0 million into a smelter planned for commissioning in 2027. Sandawana Mine is also making waves, sinking US million into a concentrate processing plant aimed to double its output to 500,000 tonnes by 2026.
These developments signal not just financial investment but also a pivotal structural transformation in the sector. The beneficiation tax set to be introduced in 2025 serves dual purposes: as a fiscal measure and as an industrial policy tool designed to motivate miners to invest more in local processing. The Zimbabwe Revenue Authority (ZIMRA) will implement a 5% levy on unbeneficiated concentrates, ensuring miners are incentivized to keep more value within the nation.
The impending policy changes come amid an unrelenting increase in global lithium demand, driven by the rapid rise of electric vehicles and renewable energy initiatives. A recent report indicates that electric vehicle sales have surged to over four million units in early 2025, marking a 35% year-on-year increase—a trend that promises to further bolster the need for lithium.
Zimbabwe boasts approximately 480,000 metric tonnes of known lithium reserves, ranking as the seventh largest globally. Some regions, particularly Bikita, are noted for their high-quality deposits, with concentrations reaching up to 6.5% lithium oxide. This advantage, along with strong support from foreign investors, positions Zimbabwe favorably in the global marketplace.
However, while optimism abounds, experts caution that numerous challenges could impact this growth trajectory. Power shortages present a significant hurdle, with the mining sector consuming half of Zimbabwe’s electricity amid a notable 30% deficit in the grid. Additionally, the reliance on foreign capital underscores the need for enhanced domestic investment in mining projects.
Future global market analysis suggests a tightening lithium market, with the current surplus expected to diminish drastically, ultimately flipping to a deficit by 2026. This potential shift presents Zimbabwe with a prime opportunity to cement its role within global supply chains.
As market dynamics evolve, the future of Zimbabwe’s lithium industry looks promising—if the country navigates the complexities of implementation and infrastructure improvements. The lithium story in Zimbabwe demonstrates an inspiring narrative of progress, poised to resonate across Africa and beyond.
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