18.8 C
Harare

Lithium Concentrate Exports to be Banned from January 2027

Published:

Zimbabwe is taking a bold step toward value addition in its lithium sector by announcing that exports of lithium concentrate will be banned starting January 2027, Mining Zimbabwe can report.

By Rudairo Mapuranga

The government says the move is meant to promote domestic processing and drive the country’s ambition to become a hub for the electric vehicle (EV) battery supply chain.

Speaking during a post-Cabinet briefing on Tuesday, Minister of Information, Hon. Jenfan Muswere, revealed that Zimbabwe mainly produces spodumene-type lithium ores, which are critical for the global energy transition. However, as the world races toward electrification, Zimbabwe wants to stop being just an exporter of raw minerals and start reaping the real benefits through local beneficiation.

“With effect from January 2027, the export of lithium concentrate will no longer be allowed,” said Muswere. “The ores produced locally are multi-element and must be fully processed within our borders.”

Bikita and Arcadia Take the Lead

Currently, two Chinese-owned operations—Bikita Minerals, now owned by Sinomine, and Arcadia Lithium Mine, owned by Huayou Cobalt—are leading the charge in domestic value addition. Both companies are investing heavily in lithium sulphate processing facilities, positioning themselves as Zimbabwe’s pioneers in downstream lithium processing.

Minister of Mines and Mining Development, Hon. Winston Chitando, called on all lithium producers—especially those lacking immediate capital or capacity for processing—to partner with Bikita or Arcadia through toll-processing arrangements, ensuring their concentrate is beneficiated locally rather than exported.

“We encourage all lithium producers to sign agreements with these two companies for toll processing if they don’t have the capacity to build their own plants,” said Chitando during the same press briefing.

A Strategic Move Amid Chinese Dominance

While Zimbabwe is keen to retain more value from its vast lithium deposits, Chinese firms dominate the landscape, controlling the largest operations and the bulk of new investments. According to the China-Global South Project, China’s dominance is a double-edged sword—on one hand, it brings capital and technology, but on the other, it raises concerns about transparency, profit repatriation, and long-term developmental impact.

Still, the government’s latest directive marks a pivotal shift from “dig and export” toward industrialising the lithium value chain. This is in line with what several producers have said recently: “We’re not just digging—we’re building an industry.”

What This Means for Zimbabwe

With Zimbabwe already recognised as one of Africa’s top lithium producers, the upcoming ban could spark a wave of investment in processing plants, create more skilled jobs, and significantly boost foreign currency earnings.

However, there are potential challenges:

  • Smaller players might struggle with access to capital to establish processing plants.

  • Power and infrastructure deficits could hinder processing operations.

  • There’s a risk of market bottlenecks if toll-processing facilities become overwhelmed.

Despite these concerns, Zimbabwe’s stance is clear: the country wants to stop being a source of cheap raw lithium for foreign processors and become a critical player in the global energy transition.

As the world shifts to clean energy, Zimbabwe is not just supplying lithium—it’s building an industry to last.

Related articles

spot_img

Recent articles

spot_img
error: Content is protected !!