Lithium Value Chain
On October 16, 2025, Chinese battery-materials giant Zhejiang Huayou Cobalt announced that it will begin lithium sulphate production in early 2026 at its newly completed US $400 million Arcadia Mine processing facility near Harare. The project marks a major milestone in Zimbabwe’s effort to transition from exporting raw lithium concentrate to producing battery-grade materials for the global electric-vehicle (EV) industry. Once operational, the plant is expected to produce over 400,000 tons of lithium concentrate annually, strengthening the country’s position as one of Africa’s fastest-growing suppliers in the global energy-transition market.
From Extraction to Refinement
The Arcadia facility represents a cornerstone in Zimbabwe’s broader local-processing and beneficiation policy, which aims to retain more value domestically. By refining lithium sulphate—a key precursor in lithium-ion battery production—Huayou’s investment will generate skilled employment, enhance export earnings, and contribute to technology transfer in Zimbabwe’s nascent industrial sector. Government officials have hailed the plant as proof that the country’s 2022 mining-sector reforms are working, citing incentives that favor investors who establish downstream operations within national borders.
Strategic Implications for Africa’s Lithium Corridor
Analysts note that the Arcadia project reflects a broader continental shift as Southern Africa becomes a strategic lithium hub. With Zimbabwe, Namibia, and Mozambique all hosting large deposits, regional cooperation could unlock a competitive advantage in the battery-materials supply chain. For China, the plant strengthens its foothold in Africa’s critical-minerals landscape, while for Zimbabwe it signals a new industrial chapter one that aims to move from raw exports to refined power sources. As the plant readies for commissioning, it embodies a defining test of whether Africa can capture more of the green-economy value chain at home.