Wedoany.com Report-Oct. 18, China’s Zhejiang Huayou Cobalt Co. (603799.SS) announced that it will begin producing lithium sulphate in the first quarter of 2026 from its new $400 million plant in Zimbabwe, as the country advances efforts to promote local mineral processing.

Workers load lithium concentrate in Goromonzi, Zimbabwe, January 9, 2024.

The newly built facility, located at Huayou’s wholly owned Prospect Lithium Zimbabwe’s Arcadia mine, has an annual capacity of over 50,000 metric tons of lithium sulphate, according to a company executive during a site tour. Lithium sulphate serves as an intermediate product that can be refined into battery-grade materials such as lithium hydroxide or lithium carbonate, which are essential for battery manufacturing.

Prospect Lithium Zimbabwe general manager Henry Zhu said: “We will start the first production from the beginning of next year. The quantity of the lithium sulphate should be more than 60,000 metric tons, but it will depend on the configuration of the plant, because it is brand new.”

Zimbabwe, Africa’s leading lithium producer, has been encouraging mining companies to carry out processing within the country to strengthen its economy. Huayou acquired the Arcadia lithium mine for $422 million in 2022 and commissioned a $300 million lithium concentrator there in 2023. The new lithium sulphate plant marks the company’s further investment in value-added processing in the region.

Huayou, together with other Chinese metal firms including Sinomine Resource Group (002738.SZ), Chengxin Lithium Group (002240.SZ), Yahua Group (002497.SZ), and Tsingshan Holding Group, plays a key role in Zimbabwe’s lithium industry. These companies produce lithium concentrates in Zimbabwe and transport them for further processing. In 2024, Huayou exported around 400,000 tons of lithium concentrate from the country.

Zimbabwe plans to ban the export of raw lithium concentrates starting in 2027, aiming to increase domestic refining capacity and retain more value from its mineral resources. Sinomine has also announced its intention to construct a $500 million lithium sulphate plant at its Bikita mine, which will further expand Zimbabwe’s lithium processing capacity.

Huayou’s new facility represents a significant step in developing Zimbabwe’s lithium value chain and aligns with the country’s strategy to boost local industrialization. The project’s launch is expected to contribute to both job creation and technology transfer while strengthening Huayou’s global supply chain for electric vehicle battery materials.