Prospect Lithium Zimbabwe expects to more than double its revenue once the group's lithium sulphate plant, designed to process concentrates into higher-value lithium salts in the first quarter of 2026, comes into production.
The company said it was at the peak of constructing the new lithium sulphate processing plant, which is now at 75 percent.
The plant has a design capacity of about 60 000 tonnes of lithium sulphate per annum.
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The lithium sulphate will significantly increase the value the company can realise compared to what Prospect currently earns from the 400 000 tonnes of spodumene and petalite concentrates it produces annually.
Lithium sulphate has more value because it contains lower lithium content.
This development comes as the Government continues to spearhead value addition in the lithium mining sector and has already banned the export of raw lithium to promote local processing of the mineral.
Lithium sulphate is a crucial component and additive in battery production and technology. It is used to create battery salts and electrodes as well as to improve the performance of existing lead-acid batteries.
According to Prospect, the company's drive is in tandem with the Government's ultimate goal to transform lithium into higher-value products, which would boost the country's economy and create jobs.
The Government wants to go beyond just exporting lithium concentrates and instead focus on developing a local industry that can process and manufacture value-added products.
A ban on the export of raw lithium is already in place, and the Government is considering extending the ban to lithium concentrates.
The plan to ban lithium concentrate exports in 2027 is part of a broader strategy to promote beneficiation and industrialisation in Zimbabwe.
Speaking during the tour of the mine, PLZ public relations manager Patience Chizodza said this development is anticipated to have a profound impact on the company's financial performance, with revenue projected to surge significantly
It is expected that the revenue growth will drive economic growth, tax collection and job creation.
"Lithium sulphate is a high-value product when we compare it to lithium concentrates; it is a precursor to lithium carbonate. So, this will more than double our topline as a company.
"We are expecting the lithium sulphate to boost the company's fortunes and the economy substantially," said Mrs Chizodza.
Prospect plans to commission the plant by the end of this year, while production will start in the first quarter of 2026.
Speaking during the tour, Minister of Mines and Mining Development Winston Chitando said the company was at the forefront of Zimbabwe's lithium value-addition drive.
The minister noted that lithium sulphate will unlock substantial economic benefits for the company, further cementing its position as a key player in the industry and Zimbabwe's economic growth.
"The company is leading in the value addition drive and doing extremely well, and by January, Zimbabwe will be a lithium sulphate producer. Obviously, this draws us closer to the overall plan, where we are targeting at least a billion US dollars in terms of revenue generation," said Minister Chitando.
He emphasised that the company was acting according to timelines set by the Government, such as plans to ban lithium concentrate exports by January 2027.
"Yes, January 2027, no export of lithium concentrates. Not negotiable, no export. And I have given sufficient notice to all producers to act. No negotiation," said the minister.
This comes after the Government in 2022 signed a Memorandum of Understanding (MOU) with a key player in the industry for the establishment of the Mapinga Mines to Energy Park, just outside Harare.
The industrial park will have facilities to process and value-add lithium beyond the concentrate stage to include the production of solar panels and lithium batteries.
Once established, all lithium producers will be obliged to supply raw lithium and concentrates to the industrial park for value addition.
Lithium has become the world's most sought-after mineral, due to its role in the production of electric vehicle batteries.
Zimbabwe is endowed with huge deposits of lithium, which has seen increased investment in the lithium sector.
However, lack of technological advancements and economic challenges have slowed the country's capacity to process raw lithium, leading to the loss of billions of potential revenues.
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Efforts to add value to the resource have been topical and in December 2022, the Government banned the export of unprocessed lithium to curb smuggling through the country's porous borders to neighbouring nations, including South Africa.
"No lithium-bearing ores, or unbeneficiated lithium whatsoever, shall be exported from Zimbabwe to another country," read the regulation published in a Government notice issued by Mines Minister Winston Chitando in 2022.
To incentivise investments into value addition, Finance and Economic Development Minister Professor Mthuli Ncube, in 2023, dangled US$20 million for a partnership with investors willing to venture into lithium battery manufacturing in Zimbabwe.
Zimbabwe boasts an abundance of hard rock lithium, which has attracted significant investment from Chinese conglomerates.
In recent years, Zhejiang Huayou Cobalt, Sinomine Resource Group, and Chengxin Lithium Group have collectively acquired lithium mines and projects.
