Keypoints:
- $270m lithium concentrator to break ground in Q3
- Built by two Chinese firms, unnamed for now
- Output expected as lithium prices rebound in 2027
ZIMBABWE’S state-owned Kuvimba Mining House is set to begin construction of a major lithium concentration plant at its Sandawana mine in the third quarter of 2025, aiming to tap into the next upturn in global lithium demand.
The $270 million project, unveiled by Kuvimba CEO Trevor Barnard, is expected to be commissioned in early 2027—timed to coincide with what the company believes will be a rebound in lithium prices after a prolonged slump.
‘We are still finalising the last few agreements that we need to put in place and ensuring we meet all required industry conditions for our partners to commence construction,’ Barnard told reporters in Harare this week.
Chinese partners to build and operate
The 600,000 metric ton-per-year lithium concentrator will be developed in partnership with two Chinese metals giants, though Barnard declined to name them due to ongoing negotiations. The agreement will see the firms finance, construct, and operate the plant for a minimum of five years before handing over control to Kuvimba.
Zimbabwe has ramped up its focus on lithium as global electric vehicle (EV) adoption accelerates, making the battery metal increasingly strategic. Lithium is a key component in rechargeable batteries used in EVs and energy storage systems.
The Sandawana site, located in the southern Mberengwa district, has already been stockpiling ore, some of which is being trucked to Tsingshan Holding Group’s processing facility in Gwanda. Tsingshan is a major Chinese producer of nickel and stainless steel with strong ties to Zimbabwe’s mining sector.
Market rebound expected by 2027
Lithium prices have plunged nearly 90 percent over the past two years due to a global supply glut, largely driven by Chinese output. This has forced some producers to shelve projects or lay off workers. But that tide may be turning.
‘Our forecast is that lithium prices will recover sometime in the year 2027, right at the point we expect the concentration plant to begin production,’ Barnard noted. He cited strong EV sales in China and reduced global output as signs of a market correction.
Kuvimba’s move to invest during the downturn echoes a broader strategic shift by resource-rich African nations to maximise value locally rather than rely on raw exports.
Export ban to reinforce local processing
Zimbabwe, the largest lithium producer on the continent, has already signalled its intent to ban exports of unprocessed lithium concentrates from 2027. The aim is to stimulate value addition and keep more revenue-generating activity within the country.
By that date, the government expects other major players—namely China’s Zhejiang Huayou Cobalt and Sinomine Resource Group—to have completed lithium refining facilities in-country. These investments align with President Emmerson Mnangagwa’s push for Zimbabwe to become a regional hub for battery mineral processing.
The Sandawana project adds to Zimbabwe’s growing portfolio of energy transition assets and positions the country to benefit from what could be a new global lithium supercycle.
