Prem in production1 Mar 2026 11:14
The government’s decision to bring forward the ban on exporting raw ore has shaken the entire sector and exposed just how limited Zimbabwe’s processing capacity really is. At present, only one lithium processing facility is fully operational, and the rest are still in various stages of construction.
Chinese groups are now racing to fill that gap. Sichuan Yahua has started building a lithium sulphate plant at Kamativi, joining Huayou at Arcadia and Sinomine at Bikita. That makes three major Chinese-backed refineries in development — but none of them solve the immediate bottleneck for the wider industry.
For Zulu, the implications are clear. Spodumene concentrate will need further processing before it can be exported, and that adds a new layer of cost before any revenue is realised. Tolling fees, transport to a domestic refinery, and the loss of margin between concentrate and sulphate/hydroxide all eat into gross profit. Until a long‑term processing partnership is secured, those economics remain uncertain.
If a strategic investor does step in, construction of a dedicated refinery would need to be near the top of the agenda — but that is a multi‑year, multi‑hundred‑million‑dollar commitment. Current estimates for a lithium sulphate/hydroxide plant sit around $300–500m, and full electrification of Zulu adds another ~$250m. If Zulu wants to operate in the Premier League, this level of investment is unavoidable.
The policy shift hasn’t killed the industry, but it has changed the rules. Mines with processing solutions will thrive. Mines without them will face higher costs, lower margins, and delayed revenue.
I think all African countries will follow Zimbabwe.
Acker
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