Kuvimba to Launch $270 Million Lithium Concentrator Project at Sandawana Mine

State-owned mining firm Kuvimba Mining House is preparing to break ground on a $270 million lithium concentrator at its Sandawana Mine, with construction scheduled to begin in the third quarter of 2025. The facility is expected to be operational by early 2027, according to company CEO Trevor Barnard.

The plant will be capable of processing 600,000 metric tons of lithium ore annually and will be developed in partnership with two prominent Chinese metal firms. While the identities of the companies remain confidential due to ongoing discussions, the deal stipulates that the Chinese partners will construct and manage the facility for a minimum of five years before transferring ownership to Kuvimba.

“We’re in the final stages of concluding key agreements and ensuring that all required industry standards are in place to begin construction,” said Barnard. “We expect to start building in the third quarter.”

Barnard also mentioned that the project’s timeline could coincide with a potential recovery in global lithium prices. Despite current market challenges—including a sharp drop of nearly 90% in lithium spot prices due to supply gluts and reduced electric vehicle demand—Chinese firms continue to invest in Zimbabwe’s lithium resources to support their domestic supply chains.

Last year, Zimbabwe supplied approximately 14% of China’s lithium imports, according to research by CRU Group.

Market experts believe the current pricing downturn may be temporary. Recent supply cutbacks and a resurgence in EV sales in China could tighten the market, potentially pushing demand ahead of supply by year-end.

“Our projections suggest lithium prices could bounce back by 2027—just as we expect the concentrator to begin production,” Barnard added.

In a move to retain more value from its mineral exports, Zimbabwe—Africa’s leading lithium producer—announced plans to ban lithium concentrate exports beginning January 2027. The policy aims to promote in-country processing and industrialisation.

Historically, Chinese companies operating in Zimbabwe have exported unprocessed lithium concentrates to China for refining. In response, Zimbabwe is currently developing two lithium sulphate processing facilities: one at Bikita Minerals, operated by China’s Sinomine Resource Group, and another at Prospect Lithium Zimbabwe, run by Zhejiang Huayou Cobalt.

Meanwhile, lithium exploration and development are gaining momentum across the continent, with countries like Namibia, Mali, Ghana, and the Democratic Republic of Congo actively scaling up their activities in the sector.