Zimbabwe will prohibit the export of lithium concentrates starting in 2027

Winston Chitando, Zimbabwe’s minister of mines, announced on Tuesday that the country will stop exporting lithium concentrates starting in 2027 as part of its ongoing push for greater domestic processing.

Lithium ore exports were prohibited in 2022 by Africa’s leading producer of lithium, which is used in batteries that power renewable energy technology. Since then, miners have been encouraged to process more domestically.

The majority of Zimbabwe’s lithium miners are from China, and they have been exporting concentrates back home.

Two Zimbabwean mines, Prospect Lithium Zimbabwe, owned by Zhejiang Huayou Cobalt (603799.SS), and Bikita Minerals, controlled by Sinomine (002738.SZ), are presently developing lithium sulphate plants, according to Chitando.

An intermediate product called lithium sulphate can be processed to produce battery-grade materials like lithium hydroxide or lithium carbonate, which are utilized in battery production.

“The export of all lithium concentrates will be banned from January 2027 due to that capacity which is currently in the country,” Chitando stated during a press conference held after a weekly cabinet meeting.

After lithium prices plummeted in 2023, Zimbabwe loosened its stance and allowed miners until March 2024 to submit plans for building local refineries.

A group of Chinese companies, including Sinomine and Zhejiang Huayou Cobalt, Chengxin Lithium Group (002240.SZ), opens new tab Yahua Group (002497.SZ), and Canmax Technologies (300390.SZ), have invested over $1 billion since 2021 to purchase and develop lithium projects in Zimbabwe.