Chinese cobalt giant aims to have Zimbabwe lithium project delivering early next year

Zhejiang Huayou Cobalt says it is looking into adding value to local product for export

Chinese companies are making multimillion-dollar acquisitions to secure lithium supplies amid worldwide race to go green

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China’s Huayou Cobal says it is investing US$300 million to develop the Arcadia mine in Zimbabwe with an aim to expand production for the EV market. Photo: Shutterstock Images

Published: 12:00pm, 26 Sep 2022Updated: 3:09pm, 26 Sep 2022

China’s biggest cobalt refiner will complete a lithium-processing plant in Zimbabwe by the end of the year, with delivery of its first batch of the mineral expected in early 2023.

“Commercial production at our Arcadia Lithium project will start in the first quarter of 2023,” a spokesman for Shanghai Stock Exchange-listed Zhejiang Huayou Cobalt said.

Huayou Cobalt bought the Arcadia hard-rock lithium mine from Australian-listed Prospect Resources and Zimbabwean minority stakes in December for US$422 million.

The battery maker said it was investing US$300 million to develop the mine with an aim to expand production for the electric vehicle (EV) market.

Huayou Cobalt said it was undertaking feasibility studies to see if it could improve and add value to the lithium product locally before it was exported.

“We are mindful, though, that a number of conditions and requirements are needed to undertake battery production, and these are not yet available in Africa in general, and Zimbabwe in particular,” a spokesman said in emailed responses.

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