China’s clean energy demands fuel Zimbabwe’s charge up the mining value chain

Global scramble for ‘white gold’ puts lithium-rich countries in driver’s seat for value added benefits

African resources for batteries a ‘natural fit’ for Chinese investment, analysts say

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Bags filled with lithium ore are seen on the grounds of Prospect Lithium Zimbabwe’s processing plant outside of the capital Harare. Lithium – known as “white gold” – is an essential raw material for the lithium-ion rechargeable batteries that power electric vehicles and in solar panels that store solar energy. Photo: AP

Published: 12:00pm, 15 Jul 2023

As nations seek to cut their carbon footprints, demand has surged for clean energy, fuelling the global competition to secure critical minerals for climate-friendly power sources like batteries. China has been laser-focused on the task.

After spending more than US$1 billion to acquire mining sites in Zimbabwe over the past two years, several Chinese-owned companies have now completed construction or upgrades of lithium processing plants. Observers said the new plants would help the country move up the mining value chain by processing – as well as mining – the metal while employing thousands of workers.

Shanghai Stock Exchange-listed Zhejiang Huayou Cobalt, China’s Sinomine Resource Group, and Shenzhen-listed lithium materials producer Chengxin Lithium Group are three Chinese mining companies that have recently commissioned processing plants in Zimbabwe, which holds one of the world’s largest hard-rock lithium reserves.

Lithium – known as “white gold” – is an essential raw material for the lithium-ion rechargeable batteries that power electric vehicles and in solar panels that store solar energy.

Last week, Prospect Lithium Zimbabwe, a unit of the Chinese mining giant Zhejiang Huayou Cobalt, formally commissioned a US$300 million lithium processing plant at the Arcadia hard-rock lithium mine.