In a strategic move reflecting China’s ongoing interest in securing critical minerals, two of its major mining firms, Zhejiang Huayou Cobalt Co. and Tsingshan Holding Group, have partnered with Zimbabwe’s state-owned Kuvimba Mining House to develop a large lithium deposit at the Sandawana site. This partnership is expected to transform Zimbabwe’s lithium mining capabilities, with plans to invest between $250 million and $300 million into building a new lithium mine and processing plant.

Despite the global lithium market experiencing a near 90% drop in prices since late 2022, Chinese firms are keen to secure lithium feedstock to support their battery production industries back home. The Zimbabwean government, recognizing the vast potential of its lithium reserves, has been keen to attract foreign investment in this area. The mining plant is projected to produce about 500,000 tons of lithium concentrate annually, adding significantly to Zimbabwe’s position in the global lithium supply chain. In fact, the country is expected to account for 10% of global lithium production by the end of 2024.

This development underscores Zimbabwe’s growing role in the global energy transition, as lithium is a critical component in battery technology, particularly for electric vehicles. Chinese mining companies, including Huayou and Tsingshan, have invested heavily in Zimbabwe’s lithium sector in recent years. Huayou alone has poured over $700 million into the Arcadia lithium project, while Tsingshan has established smaller operations in Gwanda.

The Sandawana project is part of a larger initiative to diversify and expand Zimbabwe’s mining output. Previously a site for emerald extraction, Sandawana has been repurposed for lithium mining, further solidifying Zimbabwe’s status as a key player in the supply of this vital metal. However, while the partnership promises to bring economic benefits, concerns persist over the country’s increasing dependency on Chinese investments and the socio-political implications of these partnerships.

With prices for lithium expected to rebound by 2026, this collaboration positions both Zimbabwe and China to capitalize on the anticipated global lithium shortages. The project is slated to be completed by the end of 2025, making it Zimbabwe’s largest lithium producer once fully operational.

This partnership also highlights the broader strategy of Chinese companies to secure resources globally, as they continue to expand their footprint in Africa’s mining industry, particularly in regions rich in battery metals like Zimbabwe and the Democratic Republic of Congo.