Zimbabwe Lithium Export Ban Targets $12bn Revenue

Zimbabwe’s lithium concentrate export ban from January 2027 aims to capture more mining revenue and achieve the country’s $12 billion annual mining target by 2030.

The Southern African nation possesses the continent’s largest lithium reserves, essential for electric vehicle battery production in the global $78.9 billion lithium-ion battery market projected to reach $349.6 billion by 2034.

Zimbabwe’s 2022 raw lithium ore export ban primarily targeted artisanal miners while permitting lithium concentrate exports. The upcoming concentrate ban represents a comprehensive strategy to maximize domestic value addition and processing capabilities.

“The ban could improve Zimbabwe’s self-sufficiency in lithium processing and help achieve middle-income economy status outlined in Vision 2030,” according to industry analysts.

However, environmental groups estimate 3,000 tonnes of raw lithium leave the country daily through various channels. Between now and 2027, approximately 1.6 million additional tonnes could be extracted and exported, reducing long-term domestic processing potential.

Most of Zimbabwe’s lithium mines are owned by Chinese companies including Sinomine, Zhejiang Huayo Cobalt, Chengxin Lithium, Yahua, and Canmax. The concentration of foreign ownership raises concerns about resource sovereignty and benefit distribution.

The lithium rush since 2021 has generated limited employment opportunities and minimal infrastructure investment. Communities near mining sites face pollution, land displacement, and limited economic benefits from extraction activities.

“The over-reliance on Chinese investments in the lithium industry has set a bad precedent for what might happen with other minerals in future,” experts warn.

Zimbabwe exported approximately $209 million worth of lithium in the first nine months of 2023, demonstrating significant revenue potential. However, most value addition occurs overseas, particularly in China where raw materials are processed into batteries and other products.

The government must establish resource sovereignty and people-centered mineral governance to ensure benefits reach ordinary Zimbabweans. Communities in Buhera, Bikita, Mberengwa, and Goromonzi have endured environmental degradation and human rights violations.

Successful implementation requires immediate action rather than waiting until 2027, comprehensive community consultation, and development of local value chains that include artisanal miners in formal economic structures.

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