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Michael Tome, Business Reporter
PROSPECT Lithium Zimbabwe (PLZ) expects to more than double its revenue once its lithium sulphate plant — designed to process concentrates into higher-value lithium salts — comes into production in the first quarter of 2026.
The company announced that construction of the new lithium sulphate processing plant is nearing completion, with progress currently at 75 percent. The facility is designed to produce approximately 60 000 tonnes of lithium sulphate per annum, marking a significant step forward in Zimbabwe’s lithium value-addition drive.
Lithium sulphate commands a higher market value than the 400 000 tonnes of spodumene and petalite concentrates Prospect currently produces annually. Despite having a lower lithium content, lithium sulphate is a critical component in battery manufacturing, used in the creation of battery salts, electrodes, and for enhancing the performance of lead-acid batteries.
This development aligns with the Government’s push for local beneficiation in the lithium mining sector. In 2022, the Government banned the export of raw lithium to curb smuggling and promote domestic processing. Now, it is considering extending the ban to include lithium concentrates by January 2027, as part of a broader strategy to industrialise and maximise economic returns from Zimbabwe’s mineral wealth.
Prospect’s initiative is in line with the Government’s vision to transform lithium into higher-value products, thereby boosting the economy and creating employment. Speaking during a tour of the mine, PLZ Public Relations Manager Mrs Patience Chizodza said the new plant is expected to significantly enhance the company’s financial performance.
“Lithium sulphate is a high-value product compared to lithium concentrates; it is a precursor to lithium carbonate. So, this will more than double our topline as a company. We are expecting the lithium sulphate to boost the company’s fortunes and the economy substantially,” said Mrs Chizodza.
The company plans to commission the plant by the end of 2025, with production set to begin in the first quarter of 2026.
During the same tour, Minister of Mines and Mining Development Winston Chitando praised Prospect for leading the country’s lithium value-addition efforts. He noted that the production of lithium sulphate would unlock substantial economic benefits and reinforce Zimbabwe’s position as a key player in the global lithium market.
“The company is leading in the value addition drive and doing extremely well. By January, Zimbabwe will be a lithium sulphate producer. This brings us closer to our overall target of generating at least US$1 billion in revenue from the lithium sector,” said Minister Chitando.
He reiterated the Government’s firm stance on the upcoming ban on lithium concentrate exports.
“Yes, January 2027 — no export of lithium concentrates. Not negotiable, no export. I have given sufficient notice to all producers to act. No negotiation,” he declared.
This announcement follows the Government’s signing of a Memorandum of Understanding (MoU) in 2022 with a major industry player for the establishment of the Mapinga Mines to Energy Park, located just outside Harare. The industrial park will host facilities for processing lithium beyond the concentrate stage, including the production of solar panels and lithium batteries.
Once operational, all lithium producers will be required to supply raw lithium and concentrates to the park for value addition, further reinforcing Zimbabwe’s commitment to building a robust local manufacturing base.
Lithium has emerged as one of the world’s most sought-after minerals due to its central role in electric vehicle battery production. Zimbabwe, endowed with vast deposits of hard rock lithium, has attracted significant investment from global players, particularly Chinese conglomerates.
In recent years, companies such as Zhejiang Huayou Cobalt, Sinomine Resource Group, and Chengxin Lithium Group have acquired lithium mines and projects across the country. However, Zimbabwe’s limited technological capacity and economic challenges have hindered its ability to process raw lithium locally, resulting in the loss of billions in potential revenue.
To address this, the Government has taken decisive steps to promote value addition. In December 2022, it banned the export of unprocessed lithium to prevent smuggling through porous borders to neighbouring countries, including South Africa.
“No lithium-bearing ores, or unbeneficiated lithium whatsoever, shall be exported from Zimbabwe to another country,” read the regulation published in a Government notice issued by Minister Chitando.
To further incentivise investment in value addition, Finance and Economic Development Minister Professor Mthuli Ncube in 2023 pledged US$20 million to support partnerships with investors interested in establishing lithium battery manufacturing operations in Zimbabwe.
With its abundant lithium reserves and growing investor interest, Zimbabwe is well-positioned to become a major player in the global lithium value chain. The successful commissioning of Prospect Lithium Zimbabwe’s sulphate plant will mark a significant milestone in the country’s journey towards industrialisation, economic diversification, and sustainable development.
Online Reporter