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The government strategy to position Zimbabwe as a key player in the global battery minerals market, which saw the Minerals Marketing Corporation of Zimbabwe (MMCZ) report significant overperformance in lithium sales for the 2025 financial year, is demonstrating tangible success, Mining Zimbabwe can report.
By Rudairo Mapuranga
Driven by a pragmatic policy focused on in-country beneficiation and major investments from key producers, lithium sales reached 1,522,893.93 metric tonnes, generating US$571.6 million and outperforming volume and revenue targets by 33% and 10%, respectively. This performance underscores the initial returns of a national plan to move beyond exporting raw ore.
In a significant clarification of this push for mineral beneficiation, Finance Minister Professor Mthuli Ncube outlined the government’s collaborative vision. “We don’t expect every lithium investor to build a refinery, but we can have one refinery to cater for everyone in the sector,” Ncube stated, drawing a parallel to the shared base metal refinery model used in the platinum industry. This approach is designed to overcome the high capital barriers of building processing plants, making value addition feasible for multiple miners.
The cornerstone of this model is already taking shape. At the Arcadia Mine, Chinese battery materials giant Zhejiang Huayou Cobalt is nearing completion of a US$400 million lithium sulphate plant—the first of its kind in Africa. This facility, set to produce over 60,000 metric tonnes of battery-grade lithium sulphate annually from early 2026, is the practical embodiment of the government’s “one refinery” vision and a direct response to policy measures.
The government’s framework uses both incentives and mandates to drive this change. The 2026 Budget introduced a 10% export tax on unbeneficiated lithium, which drops to 0% on fully processed material, creating a strong financial incentive for local processing. This policy paves the way for a complete ban on lithium concentrate exports starting in January 2027, a move designed to anchor the value chain domestically.
On the ground, the impact of these large-scale investments extends beyond sales figures. In Kamativi, the revival of the old tin mine by Kamativi Mining Company has brought grid electricity and reliable water back to a community that had been without them for years, sparking new local businesses. At Arcadia, the construction of the massive concentrator and sulphate plant has created employment for thousands, while the company is also financing the tarring of over 20 kilometres of public road in Goromonzi, upgrading infrastructure for the entire district.
However, the sector navigates a complex landscape. A global slump in lithium prices has strained finances across the industry, highlighting its vulnerability to market volatility. Furthermore, significant challenges persist, particularly chronic power shortages that threaten the viability of energy-intensive processing plants and have forced some companies to build their own off-grid power solutions.
The sales data confirms the strategy’s early momentum. With the Arcadia sulphate plant as a critical test case, the government’s model of shared beneficiation infrastructure aims to ensure Zimbabwe captures more value from its lithium resources, transforming raw potential into sustained industrial and community development.
