Arcadia Mine Nears Completion of Lithum Sulphate Plant in Zimbabwe

In response to the Government’s call for more Local Value Addition (#LVA), Prospect Lithium, a wholly owned subsidiary of Zhejiang Huayou Cobalt, announces that Africa’s first lithium sulphate plant is nearing its completion. The plant is undergoing final testing and is expected to be inaugurated during 1Q26. In 2025, the Zimbabwean Government enacted a new regulation to ban the export of raw lithium concentrates by 2027, following a ban on raw minerals in 2022.

The plant is sited next to the Arcadia mine, one of the largest #lithium mines in Zimbabwe. The Arcadia mine is located in Goromonzi, Mashonaland Province, and is just 50 kilometers east of the capital, Harare. The mine is also conveniently located off the A2 highway leading to Mozambique.

“This project is more than just a plant; it is a catalyst for economic transformation. It demonstrates how industrial investment can create jobs, empower communities, and integrate Zimbabwe into strategic global supply chains.”

Prospect Lithium Spokesperson

The plant necessitated an investment of approximately USD 400 million. The annual production capacity is 60,000 tonnes of lithium sulphate. The strategic investment is a testament that ‘Zimbabwe is open for business’ and positions Zimbabwe as a leader in Africa in terms of #LocalBeneficiation of lithium.

In 2025, Zimbabwe exported more than one million tonnes of raw lithium ore, occurring mostly as #spodumene or #petalite. This represents nearly a 30% increase compared to 2024.

During 2025, the price per tonne of lithium fell sharply from a high of more than USD 80,000 to just about USD 8,000, representing a steep 90% drop. Nevertheless, Prospect Lithium remains optimistic in the long term, as demand for Electric Vehicles (#EV) and mobile phones is accelerating. The cumulative Foreign Direct Investment (#FDI) by Huayou into the Arcadia Mine Complex now exceeds the billion-dollar mark.

Xinhai Mining is the main contractor responsible for the implementation of the plant. As part of the project, a 70-MW #PV plant was also built in line to align with green mining practices. In 2023, Arcadia Mine commissioned its lithium concentrator plant, and the lithium sulphate plant represents a natural evolution up the battery value chain.

In the future, the plant also plans to produce lithium carbonate or lithium hydroxide and expand the processing capacity of nearly 5 million tonnes of ore per annum based on the market evolution. The downstreaming of the extractive industry is a key component of Zimbabwe’s National Development Plan (#NDP), referred to locally as NDS2.