Lithium Producers Urge Zimbabwe to Support Value Addition with Fair Policy and Infrastructure
Zimbabwe’s lithium sector is not just exporting raw minerals—it is building a future, Chairman of the Lithium Producers Committee and CEO of Sinomine-owned Bikita Minerals, Gong Xuedong, said.
By Rudairo Mapuranga
As he addressed policymakers and stakeholders during the 2025 Chamber of Mines Annual Mining Conference and Exhibition in Victoria Falls, Xuedong painted a vivid picture of a rapidly evolving industry—one that has already invested over US$1.2 billion since 2021 and created over 5,000 direct and indirect jobs. Yet, he warned that despite these achievements, the sector’s long-term viability hinges on policy alignment, supportive infrastructure, and a collaborative approach with the government.
“We are not just digging—we are processing,” Xuedong declared. “We’re investing, adding value, and building an industry that can lead Africa in lithium production.”
A Sector on the Move
Zimbabwe’s lithium production has seen exponential growth. Exports leapt from just US$7 million in 2022 to over US$600 million in 2023—a staggering 800% jump. Key players such as Bikita Minerals, Prospect Lithium Zimbabwe (PLZ), Sabi Star, Kamativi, Bravura, and Sandawana are at various stages of developing beneficiation plants, with annual processing capacities now reaching 600,000 tonnes for Bikita and PLZ, and 300,000 tonnes for Sabi Star and Kamativi.
“Three companies—Bikita, PLZ, and Kamativi—have already committed to investing US$700 million collectively in lithium sulphate plants. That’s how serious we are about value addition,” Xuedong said.
Challenges Threatening Growth
Despite these strides, the sector is battling four main challenges: infrastructure, finance, regulation, and skills.
1. Power and Raw Material Shortages
Xuedong emphasised the urgent need for a stable electricity supply, particularly as companies shift to midstream operations like lithium sulphate production, which require more complex raw materials and uninterrupted power.
“Infrastructure, especially power, is a key challenge. Without reliable electricity, we can’t maintain efficient operations or scale beneficiation,” he said.
2. Financial Constraints and Low Lithium Prices
With global lithium prices plummeting, the business case for heavy investment in beneficiation has become increasingly fragile. High capital expenditure, limited credit access, and volatile pricing are stifling growth.
“The current lithium price is affecting our viability. We are investing with a long-term vision, but without support, future investment may be at risk,” he cautioned.
3. Unfair Taxation and Regulatory Misalignment
Xuedong raised serious concerns over Zimbabwe’s royalty structure, which currently imposes the same high rates on raw and processed lithium products. Additionally, a 5% levy is being applied to beneficiated products, undermining the government’s own value addition goals.
“This is discouraging investment in beneficiation. We ask the government to develop clear, fair, and consistent tax policies,” he urged.
4. Need for Technical Skills and Flexible Labour Policy
As Zimbabwe moves up the lithium value chain, companies are grappling with a shortage of skilled technical labour. Xuedong appealed for the government to ease restrictions on the importation of specialist foreign workers, especially for high-investment projects.
“We understand the need to protect local jobs, but for large projects bringing advanced technology, there should be special policies. Investors who bring in US$100 million or more should not be treated the same as small players,” he said.
Committed to Sustainability and Community Development
Xuedong also used the platform to underscore the industry’s commitment to ESG principles. Companies, he said, are not only complying with environmental standards but actively contributing to community development.
“We plant trees, manage dust and water, build schools, clinics, and roads. We hire locally. Our goal is not only profit—it’s to grow Zimbabwe sustainably,” he said.
A Call for Partnership and Policy Stability
In his closing remarks, Xuedong struck a hopeful yet firm tone, calling for deeper collaboration between government, communities, and investors.
“Lithium is a gift to Zimbabwe. Let’s treat it with care. Give us stable policy, reliable infrastructure, and supportive partnerships—and we will lead Africa in lithium,” he said. “If you doubt our commitment, just know we’ve already invested US$1.2 billion in less than three years. We want to do more.”
