Who benefits from Zimbabwe’s lithium boom? | | Story

Harare, Zimbabwe Zimbabwe’s lithium industry is dominated by several large mining projects, many of which are supported by Chinese investment. Major producers are Bikita Minerals in Masvingo District, Prospect Lithium Zimbabwe’s Arcadia Mine near Harare, Kamativi Lithium Mine in Matabeleland North, Sabi Star Lithium Mine in Buhera, Sandawana Mine in Mberengwa and Gwanda Lithium Mine in Matabeleland South.

Together, these projects will help Zimbabwe become one of Africa’s leading lithium producers and an important supplier of battery minerals used in electric vehicles and renewable energy technologies.

The country’s desire to move on from black mining gained momentum in April when Prospect Lithium Zimbabwe (PLZ) announced its first shipment of lithium sulphate, a valuable reformed commodity. The material is produced at the $400m processing plant at Arcadia Mine near Harare.

In a post on X on April 27, PLZ said: “History has been made. Arcadia Technology Zimbabwe has successfully shipped its first batch of lithium sulphate, a huge achievement for the company, the country and the continent.”

PLZ is owned by Zhejiang Huayou Cobalt, a major Chinese battery company.

Al Jazeera contacted PLZ communications manager Patience Mushore by phone and later sent questions. Although initially indicating that answers would be provided, Mr. Mushore later declined to comment, saying the company receives a lot of media inquiries and referring Al Jazeera to previously published information.

Push the process

Bikita Minerals has said it is advancing plans to raise the price of lithium. In a statement seen by Al Jazeera, the company said it is aligning its operations with Zimbabwe’s economic strategy through a multi-million dollar investment plan to develop lithium precursor products instead of sending ideas.

The company said it has set up in-house testing laboratories for real-time testing, quality control and export compliance.

“Bikita Minerals is using a $400m investment program to shift from lithium exports to focus on the production of lithium precursors,” the company said.

According to the company, the first phase of its lithium sulfate project is expected to be commissioned in the second quarter of 2027 with an annual production capacity of 60,000 tons.

Meanwhile, Mutapa Energy Minerals, a branch of the Government’s Mutapa Investment Fund, has said it plans to build a lithium oil refinery at Sandawana Lithium Mine in partnership with Zhejiang Huayou Cobalt and Tsingshan Holding Group.

The development comes as Zimbabwe seeks to maximize profits from its mineral wealth through industrialization and development.

Send profit

According to the Minerals Marketing Corporation of Zimbabwe (MMCZ), mining sales reached $983.85m in the first year of 2026, as the volume of mining exports increased by 27 percent and export prices increased by 79 percent following the government’s ban on the export of unprocessed minerals.

Lithium export earnings rose from $84.19m in the first quarter of 2025 to $178.64m in the same period this year, according to MMCZ figures.

Speaking to state media, Minister of Mines and Mining Development Polite Kambamura said the project has already generated $2bn this year and is still on the verge of expansion.

According to reports of his speech, Kambamura said the project was due to strong global prices of gold and platinum metals and economic growth in lithium processing. He cited PLZ’s Arcadia project as an example of Zimbabwe’s efforts to tap into high-quality lithium sulphate.

Al Jazeera contacted Mr Kambamura for comment, making repeated attempts via phone, text and visits to his office. However, all efforts to get an answer on the government’s lithium policies and whether sanctions are affecting the mining sector have been unsuccessful.

According to his aide, the minister spent a week at the Senate House, limiting his presence to answer questions from the media.

But experts warn that developing local mines will not only translate into economic development.

Rashweat Mukundu, a political analyst, told Al Jazeera that Zimbabwe’s push to use lithium domestically is a good strategy but may require sustained investment in the economy, technology and industry.

“Income from lithium is planned to increase, but the process should be guided by a long-term policy rather than political action,” he said.

“Without adequate funding and business coordination, Zimbabwe will be at risk of developing undeveloped mines.”

Mukundu said China is still the main investor and foreign market for Zimbabwe in the lithium sector but warned against relying too much on one partner.

“China is still Zimbabwe’s biggest market and investor for lithium, but over-reliance is risky. Zimbabwe needs to diversify its export markets and improve international relations if it wants to develop its economy and industry,” he said.

Questions also remain as to whether the increase in lithium production in the country translates into tangible change for people living near the mines.

Economic officials say that mining development in the country must be accompanied by investment in infrastructure, industrial development and community life.

“Zimbabwe’s lithium sector continues to be hampered by policy disagreements, weak infrastructure, low industrial capacity and inadequate public benefits,” Farai Maguwu, director of the Center for Natural Resource Governance, told Al Jazeera.

“Frequent changes in policy create uncertainty for investors, while bad roads, lack of electricity and weak supervision limit profits.”

Maguwu said the communities around the big lithium projects have not seen the amount of profit that many people expected from the rapid growth of the sector.

“Lithium mining areas are seeing low profits, especially near Bikita Minerals, Prospect Lithium in Goromonzi and Sabi Star. There are concerns about damaged roads, limited employment opportunities in the area, low quality of life and inadequate funding for health, education and infrastructure.

“Without a good long-term industrial strategy, Zimbabwe risks remaining a stock of materials and not benefiting fully from the lithium economy,” he said.

Mountain Mujakachi, director of the Bikita Land Institute of Development (BILD), told Al Jazeera that people’s expectations for lithium mining have not been met.

“There is no concrete evidence that the increase in value has resulted in productive employment as promised during the visit of President Emmerson Mnangagwa,” he said.

Mujakachi has said that some people in the area have complained about employment and job opportunities.

He also questioned whether the announcements made after the purchase of Bikita Minerals were fulfilled.

“Construction promises, including the $10m bridge project announced by Sinomine Resource Group after it bought Bikita Minerals, have not been fulfilled. The company has also refused to sign a contract with the local council, preventing accountability,” he said.

Mujakachi also mentioned concerns about the lack of water, environmental damage, and what has not been achieved in the matter of electricity.

Despite the criticism, Bikita Minerals has said it will continue to invest in community development projects.

In a statement seen by Al Jazeera, the company highlighted a $1m medical facility that supports more than 5,000 people, food assistance programs that reach about 10,000 students, a 132kV power project worth up to $30m, and more than $500,000 spent on rehabilitating roads and other social infrastructure.

The company said it remains committed to financial, sustainable growth and community development.

Zimbabwe’s ban on unprocessed lithium exports has also received cautious support from industry.

The Zimbabwe Diamond and Allied Minerals Workers Union said the plan is in line with the Africa Mining Vision and the goals of industrial development, but warned that improving the mines in the country will not only improve the lives of workers.

“Implementation must include dialogue, cooperation, worker safety, public benefits and transparency so that mining does not continue to be abusive,” Justice Chinhema, secretary general of the Zimbabwe Diamond and Allied Minerals Workers Union, told Al Jazeera.

“Value additions should benefit workers and communities through better jobs, workplace safety and infrastructure improvements.”

All around the world

As Zimbabwe scrambles to dominate the global battery mining market, the debate is escalating beyond export earnings and investment volume to a more fundamental question: Who benefits from the country’s lithium wealth?

For many communities living near mines, the answer is unclear.

“Without a clear long-term industrial plan, Zimbabwe risks remaining a commodity exporter rather than fully benefiting from its lithium resources,” Maguwu told Al Jazeera.