Chinese mining conglomerate Zhejiang Huayou Cobalt is set to launch lithium sulphate production in Zimbabwe by early 2026, marking a significant milestone in the country’s drive to add value to its mineral exports. The $400 million facility, located at the Arcadia lithium mine and operated by Huayou’s subsidiary Prospect Lithium Zimbabwe, is nearing completion of its first production line. Once operational, the plant will produce lithium sulphate, an intermediate material used in the manufacture of battery-grade lithium compounds such as lithium hydroxide and lithium carbonate, which are essential for electric vehicle (EV) batteries and energy storage systems.
The project is being implemented in three phases, with full-scale operations expected by the second quarter of 2026. At peak capacity, the plant is projected to produce over 50,000 metric tons of lithium sulphate annually, positioning Zimbabwe as a key player in the global clean energy supply chain. This development aligns with the country’s broader strategy to shift from exporting raw minerals to processing them locally, thereby capturing more value and stimulating industrial growth. It also reflects a growing trend among resource-rich African nations to leverage their mineral wealth for long-term economic transformation.
Government officials have welcomed the investment as a major boost to Zimbabwe’s industrialization agenda. Mines and Mining Development Minister Winston Chitando has emphasized the importance of such projects in creating employment, enhancing technical skills, and fostering infrastructure development. The plant is expected to generate hundreds of direct and indirect jobs, while also contributing to the transfer of technology and expertise in mineral processing. Its launch underscores Zimbabwe’s commitment to attracting foreign direct investment in strategic sectors and building a more resilient, diversified economy.
As global demand for lithium continues to surge, driven by the rapid expansion of the EV and renewable energy markets, Zimbabwe’s entry into the lithium sulphate production space signals a shift in its economic trajectory. Rather than serving merely as a source of raw materials, the country is now positioning itself as a value-added contributor to the global energy transition. The success of Huayou’s venture could serve as a blueprint for other African nations seeking to climb the value chain and assert greater control over their natural resources. With the Arcadia project nearing its operational phase, Zimbabwe stands on the cusp of a new era in mineral beneficiation and industrial development.