Zimbabwe’s state-owned Kuvimba Mining House will begin construction of a $270 million lithium concentrator at its Sandawana mine in the third quarter of 2025, with commissioning expected in early 2027, according to CEO Trevor Barnard.
The facility is designed to process 600,000 metric tons of lithium ore per year and will be developed in partnership with two major Chinese metals companies.
Under the agreement, the Chinese firms will build and operate the plant for a minimum of five years, after which it will be handed over to Kuvimba.
Barnard did not disclose the names of the companies, citing ongoing negotiations.
“We are finalizing the last few agreements and ensuring the right industry conditions are in place for our partners to begin construction,” Barnard said. “We are aiming to break ground in Q3 2025.”
Barnard noted the project’s timing could align with a recovery in global lithium prices, which have dropped nearly 90% in recent months due to oversupply and slower-than-expected electric vehicle (EV) demand.
Despite the price slump, Chinese companies continue to invest heavily in Zimbabwe’s lithium sector to secure raw materials for their domestic refining operations.
According to CRU Group data, Zimbabwe accounted for about 14% of China’s lithium imports in 2024.
Analysts believe the current market weakness may be temporary. Production cuts and a resurgence in EV sales in China are expected to rebalance supply and demand, potentially pushing lithium prices higher by late 2025 or 2026.
“Our forecast is that lithium prices will recover in 2027—coinciding with the expected launch of our concentrator,” Barnard said.
In a bid to maximize local value addition, Zimbabwe recently announced a ban on lithium concentrate exports starting January 2027.
The move is part of a broader push to industrialize and retain more mineral wealth within the country.
For years, Chinese companies operating in Zimbabwe have exported lithium concentrates to China for processing, bypassing domestic beneficiation.
To change this, Zimbabwe is now supporting the development of local refining capacity.
Two lithium sulphate processing plants are currently under construction: one at Bikita Minerals, owned by Sinomine Resource Group, and another at Prospect Lithium Zimbabwe, operated by Zhejiang Huayou Cobalt.
