Huayou Cobalt Investment Tops US$1.1 Billion in Zim

Huayou Cobalt has invested US$1.1 billion in Zimbabwe’s lithium sector (image source)

Chinese battery-materials giant Huayou Cobalt has pumped US$1.1 billion into Zimbabwe’s mining sector since 2022, underscoring the country’s push for local value addition and industrialisation. The investment includes a US$422 million acquisition of the Arcadia lithium project and a US$400 million lithium sulphate processing plant in Goromonzi, now in its final construction phase.

Industrial Game-Changer

During a media tour, PLZ Public Relations Manager Patience Chizodza confirmed the plant will produce 50,000 tonnes of battery-grade lithium sulphate annually, powered by 70 MW of dedicated thermal energy. “We’re committed not only to expanding operations but also to supporting local communities, environmental protection, and good governance,” she said.

Arcadia Technology Zimbabwe (ATZ) Managing Director Henry Zhu described the facility as a “game-changer” for Zimbabwe’s energy-transition strategy. The project is expected to create 1,000 direct jobs and another 1,000 indirect opportunities in chemical processing, maintenance, and logistics. Local vendors have already benefited from road-tar upgrades and dust-control schemes led by v (PLZ) to ease mine-to-plant haulage.

Value Addition and Risks

Zimbabwe’s abundant lithium reserves and high literacy rate continue to attract investors. However, the U.S. Department of State’s 2024 Investment Climate Statement highlights persistent governance challenges, including policy inconsistency, land-title disputes, and currency volatility. Huayou has sought to embed itself locally through CSR programs, women’s tailoring cooperatives for uniform production, and community electrification pilots, signalling deeper engagement beyond resource extraction.

“This plant leverages Goromonzi’s lithium resources to produce high-quality sulphate and advance Zimbabwe up the global value chain,” Zhu noted.

National Policy Shift

For decades, Zimbabwe exported unprocessed lithium concentrate. But starting January 2027, a government ban on raw concentrate exports will force beneficiation within the country, aligning with the National Development Strategy to achieve upper-middle-income status by 2030. Mining already accounts for 75 percent of export receipts, with lithium emerging as “the mineral of the future” for electric vehicles and renewable energy storage.

ATZ targets Q1 2026 for commissioning the sulphate plant, while Huayou is in talks with the Zimbabwe Investment and Development Agency (ZIDA) to expand into downstream battery-component manufacturing. Observers say the export ban, coupled with infrastructure upgrades, will determine how competitive Zimbabwe becomes in the global lithium race.