How Lithium Can Catalyze Zimbabwe’s Prosperity
Strong political will, self-less leadership at all levels, and transparent governance are the necessary prerequisites
In the rolling hills of Goromonzi, the hum of machinery at a lithium mine signals a quiet revolution. Zimbabwe, Africa’s top lithium producer, is betting on this soft, silvery metal to transform its economy. With global demand for electric vehicle (EV) batteries surging, the country’s vast lithium reserves—ranked seventh globally—are poised to catalyze prosperity, if it can navigate volatile markets and policy challenges.
Lithium, dubbed “white gold” for its role in powering the clean-energy transition, is a cornerstone of rechargeable batteries. Zimbabwe’s deposits, concentrated in areas like Bikita and Goromonzi, have drawn over $1 billion in investment since 2021, mostly from Chinese firms like Zhejiang Huayou Cobalt and Sinomine Resource Group. These companies are not just mining; they’re building processing plants, signaling a shift from raw exports to value-added production.
The stakes are high. Zimbabwe’s government estimates that it loses €1.7 billion annually by exporting unprocessed lithium instead of finished batteries. In December 2022, the country banned raw lithium exports, mandating local production of spodumene concentrate, a semi-refined product. This policy, softened in 2024 to ease pressure on miners, aims to retain economic value and create jobs in a nation where unemployment hovers around 20%.
“Lithium is our ticket to industrialization,” once said Polite Kambamura, Zimbabwe’s Deputy Mines Minister. “We’re not just selling rocks anymore; we’re building a battery industry.” The ambition is bold: Zimbabwe wants to climb the value chain, from mining to manufacturing, capturing up to 80% of the global lithium battery market’s potential, projected to hit $400 billion by 2030.
A Global Lithium Boom
The global EV market is driving Zimbabwe’s opportunity. Statista projects EV sales will grow at a 6.63% compound annual rate through 2029, reaching 19 million units. Lithium demand is expected to quadruple by 2030, fueled by batteries for EVs, grid storage, and consumer electronics. China, which dominates EV production, has locked eyes on Zimbabwe, with firms like Sinomine planning a $500 million lithium refinery by 2028.
Yet, the market is turbulent. Lithium prices crashed over 80% from their 2022 peak of $80,000 per ton to around $55,000 in 2024, hit by overproduction in China and softer EV demand. S&P Global forecasts a narrowing surplus in 2025, with supply dropping to 33,000 metric tons from 84,000 in 2024, offering hope for price recovery. Zimbabwe’s state-owned Kuvimba Mining House is banking on this, finalizing a $270 million lithium project with Chinese partners in last quarter.
Local Impact: Jobs and Empowerment
Beyond economics, lithium is reshaping lives. In Hwedza, a rural district, women like Anna Bhobho, 31, are finding new agency through lithium-powered electric tricycles. These vehicles, part of a Mobility for Africa program, cost $1 to recharge and travel 100 kilometers, offering affordable transport and income. “I’m no longer just a housewife,” Bhobho said to Africanews. “I decide how to spend my money.”
The program, targeting 70% female beneficiaries, has empowered 300 women nationwide, providing training and financial independence in a patriarchal society. Such initiatives show lithium’s ripple effects, from mines to markets, fostering social change alongside economic gains.
Policy Push and Pitfalls
Zimbabwe’s lithium strategy hinges on beneficiation—processing minerals locally to maximize value. President Emmerson Mnangagwa has promised incentives to miners who invest in refineries, like the Chinese-owned Sabi Star processing plant commissioned in 2023. The Chamber of Mines has also proposed linking royalties to lithium prices, easing the burden during downturns while capturing more revenue when prices soar.
But challenges loom. Resource nationalism, including the export ban, has sparked debate. “Countries like Zimbabwe want processing capacity, but it’s complex to build,” says analyst John Megginson. Infrastructure gaps, from unreliable power to limited rail, hamper scalability. Corruption and political instability further deter investors, with some questioning the government’s ability to sustain reforms.
Global competition is another hurdle. Australia and Chile dominate lithium production, while Bolivia’s $1 billion deal with China’s CATL for extraction plants intensifies the race. Zimbabwe must act fast to carve out its niche, leveraging lower labor costs and proximity to African markets.
A Sustainable Future?
Sustainability is a growing concern. Lithium mining can strain water resources and disrupt ecosystems, issues Zimbabwe must address to meet global standards. The government is exploring green financing, inspired by Ivory Coast’s $500 million climate fund, to balance growth with environmental stewardship.
Community engagement is critical. In Goromonzi, locals demand more jobs and infrastructure, wary of foreign firms reaping outsized profits. “We want lithium to lift us, not just China,” says miner Tafadzwa Moyo. Kuvimba’s CEO insists local hiring is a priority, but transparency remains a sticking point.
The Road Ahead
Zimbabwe’s lithium dream is a high-stakes gamble. Success could mean thousands of jobs, billions in revenue, and a foothold in the global clean-energy economy. Failure risks stranded assets and missed opportunities in a crowded market. The government’s push for local processing, backed by Chinese investment, is a step toward self-reliance, but execution is everything.
For now, the grinders at Goromonzi keep turning, and women like Bhobho pedal toward independence. Lithium’s promise glimmers, but Zimbabwe must balance ambition with pragmatism to turn its white gold into lasting prosperity. As Kambamura puts it, “This is our moment. We can’t afford to miss it.”
I see a world where Tesla or its chinese competitors builds an EV Car GigaFactory in Zimbabwe, as gateway to the African market. Distant as it may seem, I hope you see it too.