US$1.1 billion lithium investment boosts Zimbabwe’s beneficiation drive

Story by Oleen Ndori

ARCADIA Technology Zimbabwe, Africa’s first lithium sulphate processing plant, is set to significantly advance Zimbabwe’s mineral beneficiation agenda, reinforcing the country’s drive towards value addition and sustained growth in the mining sector.

The plant is part of expanding investments by Zhejiang Huayou Cobalt, through its subsidiary Prospect Lithium Zimbabwe (PLZ), following the commissioning of lithium mining operations in Goromonzi, Mashonaland East Province, by President Emmerson Mnangagwa in July 2023.

Within less than three years, Huayou Cobalt has grown its investment footprint in Zimbabwe to US$1.1 billion, positioning lithium beneficiation as a cornerstone of the Government’s strategy to transform the country from a raw mineral exporter into a producer of semi-processed and finished products, in line with Vision 2030.

Prospect Lithium Zimbabwe was acquired in 2022 for US$400 million, with construction commencing shortly thereafter. Mining operations officially began in 2023, triggering downstream economic benefits, including employment creation, skills transfer and infrastructure development in the host community.

In response to Government policy under the National Development Strategy One (NDS1), the investor moved beyond extraction to establish Arcadia Technology Zimbabwe, a sister company mandated to process lithium concentrates into lithium sulphate, a higher-value chemical product.

PLZ Public Relations Manager, Ms Patience Chizodza, said Huayou Cobalt invested an additional US$400 million towards the lithium sulphate plant, bringing total investment to US$1.1 billion.

“The Arcadia Technology Zimbabwe lithium sulphate processing plant is scheduled for commissioning in the first quarter of 2026. This development will effectively double export earnings compared to lithium concentrate exports, strengthening foreign currency inflows and delivering broader economic benefits to Zimbabwe,” Ms Chizodza said.

She added that the project aligns with Government’s beneficiation policy and demonstrates investor confidence in Zimbabwe’s ease-of-doing-business reforms under the Second Republic.

Mashonaland East Minister of State for Provincial Affairs and Devolution, Advocate Itayi Ndudzo, said the developments at Prospect Lithium Zimbabwe reflect the province’s growing contribution to the national economy, which currently stands at seven percent of Gross Domestic Product.

“The transition from raw lithium extraction to lithium sulphate processing, with a US$400 million beneficiation investment now underway, speaks to the depth and quality of industrial development taking place in Mashonaland East,” Advocate Ndudzo said.

He noted that the province is also benefiting from other strategic mining projects, including iron ore extraction in Manhize, which feeds into processing facilities straddling Mashonaland East and Midlands provinces, further strengthening regional industrial integration.

Under the National Development Strategy Two (NDS2), Government is prioritising the scaling-up of mineral development and value addition to ensure sustainable sectoral growth, increased export earnings and progress towards Zimbabwe’s target of becoming an upper-middle-income economy by 2030.

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