Boasting the sixth-largest lithium reserves globally and representing one of Africa’s biggest producers of the commodity, Zimbabwe is poised to play a crucial role in advancing the global energy transition through the supply of lithium and related products.
With untapped resources, a national agenda to develop the entire lithium value chain, and new investment flowing inwards due to growing global demand, the country is well on its way to becoming a global lithium hub.
Untapped Resources Reflect Production Potential
Boasting Africa’s largest confirmed lithium reserves, Zimbabwe has massive yet largely untapped mineral resources that offer lucrative investment opportunities for investors and mining companies alike. The country’s Bikita Mine is home to approximately 11 million tons of lithium resources; however, new exploration campaigns are likely to unlock additional reserves. Currently, the country is estimated to have the highest number of lithium projects under exploration in Africa, including the development of projects such as the Arcadia Mine, which is estimated to hold upwards of 26 million tons, and the Zulu Lithium Mine, among others, positioning the country as a global producer.
Downstream Focus Triggers Market Growth
While Zimbabwe’s upstream mineral sector is buzzing with exploration, the country has long relied on international refineries to process and distribute its lithium resources. In 2023, the government shifted its focus towards the downstream sector in a bid to drive infrastructure development, employment creation, and investments across the domestic market. Recently, the government imposed a ban on the export of raw lithium to boost the domestic value chain and strengthen value addition in the minerals sector. As such, the country is well positioned to become both a global producer and a regional processing hub, with a strong pipeline of investment opportunities emerging across the country.
Zimbabwe’s Lithium Production History Reduces Investment Risk
Zimbabwe has a history of six decades as a lithium producer. During that time, the country has attracted participation from a slate of international mining companies, established a market-focused business environment, developed the domestic workforce, and implemented a local content framework in line with global standards. The country’s experience as the biggest lithium producer in Africa, coupled with its expanding domestic market, not only reduces investment risk but is also expected to play a major role in positioning Zimbabwe as a global lithium hub as new players enter the promising market.
Zimbabwe to Meet 20% of Global Lithium Demand
As the global economy shifts to net-zero solutions, the demand for lithium, among other minerals necessary for the production of many clean energy technologies, has begun to dramatically increase. If the full potential of Zimbabwe’s lithium resources is unlocked, the country could meet upwards of 20% of global demand. Already, investment is flowing into the country, a testament to its potential to become a lithium hub.
Recent developments in the Zimbabwean market include Zhejiang Huayou’s $422 million acquisition of controlling rights to the Arcadia Mine, Premier African Minerals’ joint venture with Li3 Resources, Sinomine’s $180 million acquisition of a 100% stake in African Metals Management Services and Southern African Metals and Minerals, and China Natural Resources’ $1.7 billion acquisition of the Williams Minerals lithium mine.
Furthermore, with China, the world’s largest importer of lithium, having significant interests in the Zimbabwean market, the role the southern African country plays as a major player in the global lithium market continues to grow.
Economic Targets Trigger Long-Term Growth
With the mining industry accounting for a 12% share of the country’s gross domestic product, the Zimbabwean government has committed to boosting economic growth on the back of lithium investments and developments. The government’s plan to turn the mining sector into a $12 billion market in 2023 is expected to drive new investments and international player participation in the sector, thanks to recently introduced incentives. This will further position the country as a global lithium hub.
