Huayou to Launch $400M Lithium Sulphate Production in Zimbabwe by Early 2026

Zhejiang Huayou Cobalt Co., Ltd, one of China’s leading battery materials producers, is set to launch a major lithium sulphate production facility in Zimbabwe by early 2026. The $400 million investment marks a significant advancement in the country’s ambition to move up the mineral value chain by promoting local processing and refining. Located at Prospect Lithium Zimbabwe’s Arcadia mine near Harare, the new plant will be capable of producing more than 50,000 metric tons of lithium sulphate annually, with the potential to expand output to 60,000 tons as operations scale. This development represents a key step in Zimbabwe’s evolving role as a central player in Africa’s growing lithium industry.

The lithium sulphate facility will serve as an essential intermediate stage in the production of battery-grade lithium hydroxide and lithium carbonate, both critical components in electric vehicle (EV) batteries and energy storage systems. By transitioning from raw concentrate exports to chemical-grade processing, Huayou is aligning with Zimbabwe’s industrialization strategy, which aims to increase domestic value addition and reduce dependence on raw mineral exports. The government has announced plans to ban the export of unprocessed lithium concentrate from 2027, a policy designed to stimulate domestic refining capacity and capture a greater share of the battery supply chain’s economic value.

Huayou’s involvement in Zimbabwe’s lithium sector began in 2022 with its $422 million acquisition of the Arcadia mine, one of the country’s most promising lithium assets. The company followed this with the commissioning of a $300 million concentrator in 2023, enabling large-scale production of lithium concentrate for export. In 2024 alone, Huayou shipped around 400,000 tons of concentrate from Zimbabwe, primarily to China. The new lithium sulphate facility therefore represents the next phase in this vertically integrated strategy, transitioning the operation from a mining-focused enterprise to a chemical processing hub.

The project also underscores the broader wave of Chinese investment reshaping Zimbabwe’s mining landscape. Alongside Huayou, companies such as Sinomine, Chengxin Lithium Group, Yahua Group, and Tsingshan Holding have become dominant players in the country’s lithium industry. Notably, Sinomine is planning a separate $500 million lithium sulphate plant at its Bikita mine, signaling growing competition and confidence in Zimbabwe’s potential to become a regional lithium-processing hub.

For Zimbabwe and the wider African mining economy, Huayou’s project symbolizes a structural shift toward higher-value mineral beneficiation. By establishing downstream processing capabilities, the country stands to generate greater revenue, employment, and technological transfer, aligning with its national industrialization agenda. Moreover, Zimbabwe’s increasing lithium output strengthens Africa’s role in the global energy transition, supplying critical materials needed to meet the surging demand for electric vehicles and renewable energy storage.

Mini-Glossary

• Lithium Sulphate (Li₂SO₄): A lithium chemical used as a precursor in producing lithium hydroxide and lithium carbonate, key inputs for battery manufacturing.
• Battery-Grade Lithium Hydroxide/Carbonate: Refined lithium compounds used in the cathodes of rechargeable lithium-ion batteries.
• Value Addition: The process of increasing the economic value of raw materials by processing them into refined or finished products locally.
• Beneficiation: A mining term referring to the processing and upgrading of raw minerals to increase their market value.
• Concentrator: A plant where raw ore is processed to increase the concentration of valuable minerals for further refining.
• Vertically Integrated Strategy: A business approach where a company controls multiple stages of production, from raw materials to finished goods.