LONDON — Zimbabwe’s lithium sector has emerged as one of Africa’s most closely watched mining stories in 2025, as surging global demand for electric vehicle batteries and energy storage systems continues to reshape the geopolitics of critical minerals. With some of the world’s largest hard-rock lithium deposits, Zimbabwe has positioned itself at the centre of a new resource race—one increasingly defined by Chinese capital, industrial policy and long-term strategic planning.
By Tina Musonza
Lithium has rapidly become Zimbabwe’s most strategically significant mineral, eclipsing traditional exports such as gold and platinum in terms of future growth potential. The southern African country hosts vast spodumene-rich deposits, particularly in Goromonzi, Bikita, Arcadia, Kamativi and Mberengwa, making it one of the few African nations capable of supplying battery-grade lithium concentrate at scale.
Chinese companies have consolidated their position as the dominant investors in Zimbabwe’s lithium sector. Firms such as Sinomine Resource Group, Zhejiang Huayou Cobalt, Chengxin Lithium and Canmax Technologies have acquired major assets and injected hundreds of millions of dollars into mine development, processing plants and logistics infrastructure.
In 2025, Zimbabwean lithium exports remain overwhelmingly destined for China, where refiners convert raw concentrate into lithium carbonate and lithium hydroxide for use in electric vehicle batteries. This supply chain integration aligns with Beijing’s broader industrial strategy to secure upstream control of critical minerals essential to its clean energy transition.
Zimbabwe’s government has welcomed Chinese investment, citing its speed of execution and willingness to fund large-scale projects in a high-risk operating environment. Several Chinese-backed lithium projects moved from acquisition to production within two to three years—an unusually fast timeline in the mining industry.
A defining feature of Zimbabwe’s lithium policy in 2025 is its insistence on local beneficiation. The government continues to enforce a ban on the export of unprocessed lithium ore, requiring mining companies to produce at least lithium concentrate locally. Authorities argue that the policy is essential to retaining value within the country and building a domestic minerals processing base.
As a result, new processing plants have come online or entered construction during the year, creating jobs and increasing export earnings. However, the policy has also raised concerns among some investors over regulatory unpredictability and the cost of downstream processing in a country facing power shortages and currency instability.
Zimbabwe’s Ministry of Mines has defended the approach, saying the country is determined not to repeat historical patterns where raw minerals were exported cheaply while value was captured offshore.
Lithium is now a key pillar of Zimbabwe’s export earnings and a critical source of foreign currency inflows. Government projections suggest lithium could generate more than US$1 billion annually by the late 2020s if current production trajectories are maintained.
In 2025, the sector has contributed to improved mining output figures and helped stabilise Zimbabwe’s balance of payments. However, economists caution that the broader economic impact will depend on governance, taxation and reinvestment of revenues into infrastructure, skills development and local industries.
Communities near mining operations have seen mixed outcomes. While employment opportunities have expanded, concerns persist over environmental management, land compensation and transparency in community benefit-sharing agreements.
Although China remains the dominant player, Western governments and companies are showing renewed interest in Zimbabwe’s lithium potential, driven by efforts to diversify supply chains away from Chinese control. European and North American policymakers increasingly view lithium through a strategic lens, linking access to critical minerals with energy security and industrial resilience.
Despite this interest, Western investment has been slower to materialise, constrained by sanctions-related risk perceptions, policy uncertainty and competition from well-capitalised Chinese firms. Analysts note that unless Zimbabwe offers clearer regulatory frameworks and long-term policy consistency, it may struggle to attract diversified capital beyond its existing partners.
One of the sector’s biggest challenges in 2025 remains infrastructure. Lithium mining and processing are energy-intensive, and Zimbabwe’s power supply remains fragile, with frequent outages and reliance on imports from the Southern African Power Pool.
Some mining companies have responded by investing in captive solar plants and diesel generation, increasing project costs but improving operational stability. Transport logistics—particularly rail capacity to ports in Mozambique and South Africa—also remain a bottleneck for scaling exports.
As production accelerates, scrutiny of environmental standards has intensified. Lithium mining, while critical to the global green transition, carries risks related to water use, tailings management and land degradation. Civil society groups have called for stronger oversight and transparent environmental impact assessments.
The government has pledged tighter enforcement of environmental regulations and improved monitoring, though implementation capacity remains limited.
Looking ahead, Zimbabwe’s lithium sector faces both significant opportunity and strategic risk. Global demand for lithium is expected to continue rising sharply through the next decade, driven by electric vehicles, grid storage and renewable energy systems. Zimbabwe’s hard-rock lithium deposits position it well to benefit from this trend.
However, long-term success will depend on whether the country can move further down the value chain, potentially into lithium chemicals and battery components, while maintaining policy stability and balancing foreign investment with national interests.
For now, Zimbabwe’s lithium story in 2025 is one of rapid growth, heavy Chinese involvement and high geopolitical relevance—placing the country firmly on the global map of critical mineral suppliers, even as questions remain about how much of the boom will ultimately translate into broad-based development.
Western investment interests
Zimbabwe’s lithium sector is increasingly being viewed as a long-term strategic asset as Western investors begin to re-engage, driven by the accelerating global energy transition and the urgent demand for secure, diversified critical-minerals supply chains.
With lithium central to electric vehicle batteries, grid-scale energy storage and renewable technologies, Zimbabwe’s hard-rock deposits are attracting renewed attention from European and North American investors seeking alternatives to over-concentration in a few jurisdictions.
Western interest is also being shaped by evolving geopolitical and regulatory considerations. Governments in the European Union, the United Kingdom and the United States are encouraging private capital to secure lithium supplies from politically stable and resource-rich countries through development finance, export credit guarantees and strategic partnerships.
Zimbabwe’s position as Africa’s largest lithium producer, combined with its proximity to regional transport corridors and ports, gives it a comparative advantage in supplying future battery value chains outside China-dominated processing routes.
However, Western investors remain cautious and are likely to prioritise governance reforms, policy consistency and transparency in licensing and beneficiation requirements. Clear fiscal terms, predictable export regulations and enforceable environmental, social and governance (ESG) standards will be critical in unlocking long-term capital.
Industry analysts say Zimbabwe’s insistence on local value addition could, if properly structured, align with Western preferences for responsible sourcing and local industrial development rather than purely extractive models.
Looking ahead, prospects for Western participation may lie in joint ventures, downstream processing, battery-grade lithium refining and technology transfer partnerships rather than direct mine ownership alone.
As global competition for critical minerals intensifies, Zimbabwe has an opportunity to balance Chinese dominance with diversified investment, positioning itself as a key node in the global clean-energy supply chain while maximising economic returns and industrial development at home.
