Zimbabwe will stop exporting lithium concentrate from 2027 to promote local processing.
Chinese enterprises are building two lithium sulfate factories to support this transition.
Value-added products like lithium carbonate will bring higher export earnings.
Zimbabwe is Africa's largest lithium producer, with a lithium concentrate production of 2.4 million tons in 2024. Zimbabwe plans to stop exporting lithium concentrate starting January 2027. The goal is to develop the local processing industry and gain more value from its minerals.
Mines Minister Winston Chitando announced this decision on Tuesday, June 10. He stated that this move aligns with ongoing lithium sulfate factory projects, particularly those led by China Minmetals Corporation and Zhejiang Huayou Cobalt. These companies are constructing processing plants at Bikita and Arcadia mines.
Lithium sulfate is refined from lithium concentrate and used to produce high-value battery-grade chemicals such as lithium carbonate and lithium hydroxide. Chitando said that as processing capacity increases, Zimbabwe will no longer allow the export of unprocessed lithium concentrate starting in 2027.
"Given Zimbabwe's current capacity, all exports of lithium concentrate will be prohibited starting January 2027," he said.
The government initially invited all mining companies to submit plans for building their own lithium sulfate factories. This selection process is still undetermined, but Chitando also encouraged companies to sign processing agreements with the owners of these new factories.
This initiative aims to maximize Zimbabwe's revenue from its lithium resources by shifting exports toward value-added products. For example, the price of battery-grade lithium carbonate on the Shanghai Metals Market is about $7,000 per ton, while Zimbabwe's lithium concentrate price is only $570 per ton.
Not long ago, mining companies requested the government delay imposing a 5% tax on concentrate exports. They argued that the tax should only apply after the new factories are fully operational in 2027. The government has not yet responded to this request.
Source: ecofinagency
Original Article: https://www.toutiao.com/article/1834723854210112/
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