ZIMBABWE is calling on lithium miners operating within its borders to focus on producing battery-grade lithium locally, with the possibility of imposing an export tax on lithium concentrate in the future, according to Mines Minister Winston Chitando’s statement on Wednesday.
The southern African nation holds substantial lithium reserves, a critical mineral for the global shift toward cleaner energy technologies, which Zimbabwe hopes will contribute to the revival of its struggling economy.
Over the past two years, Chinese companies such as Zhejiang Huayou Cobalt, Sinomine Resource Group, Chengxin Lithium Group, and Canmax Technologies have invested more than $1bn in acquiring and developing lithium projects in Zimbabwe. Some of these projects have already commenced production and are expected to collectively yield nearly 1.5 million tonnes of lithium concentrates per year in the coming year.
In an effort to curb unregulated mining and smuggling of the mineral by artisanal miners, Zimbabwe banned the export of unprocessed lithium ore last year, allowing only lithium concentrates to be exported. The government now seeks to encourage miners to go beyond concentrate production, as these concentrates are typically sent abroad, primarily to China, for further processing.
‘Obviously, what the government wants is to move up the value chain, but it won’t happen overnight,’ Minister Chitando said during his address at the Zimbabwe Chamber of Mines’ annual general meeting. He further mentioned that some lithium miners have plans to eventually produce battery-grade lithium locally.
Chitando explained, ‘As the government, once we have an entity capable of value addition beyond lithium concentrates and reaching a higher stage, two possibilities will arise: the extreme case would be to ban the export of lithium concentrates, which is unlikely, or we will impose a levy.’
Huayou, which invested around $700 million in acquiring and developing Zimbabwe’s Arcadia lithium mine in 2022, stated last year that it could not commit to producing battery-grade lithium in the near term. The company, China’s leading cobalt refiner, cited Zimbabwe’s limited renewable power supply and the lack of essential materials like natural gas and chemicals necessary for battery-grade lithium production, whose importation would be financially burdensome for most African countries.
Zimbabwe’s push for local production of battery-grade lithium signifies its ambition to enhance value addition within the lithium sector, tapping into the potential economic benefits and contributing to the global transition towards cleaner energy technologies.
