Govt imposes ban on lithium exports

CLOUDINE MATOLA

Zimbabwe will impose a blanket ban on the export of lithium concentrates starting January 2027, in a bold move to accelerate local value addition within the mineral sector, Business Times can report.

The decision, announced by Mines and Mining Development Minister Winston Chitando at a post-Cabinet media briefing this week, follows an earlier prohibition on the export of raw lithium ore under the government’s National Development Strategy 1 (NDS1).

It marks a significant escalation in the country’s efforts to position itself as a competitive player in the global battery supply chain.5

“Among its other uses, lithium sulphate is a direct input into battery making, so really we are moving to a stage where we are upgrading our lithium production,” Chitando said.
“So, because of that capacity which is now in the country, with effect from January 2027, the export of lithium concentrate will no longer be allowed. Come January 2027, no player will be allowed to export lithium concentrates.”

Chitando urged stakeholders in the lithium industry to align with the new policy direction.
“We’d like to take this opportunity to call upon the players in the lithium sector to come together and collaborate so that those who are not investing in lithium sulphate value addition facilities sign the respective agreements, because come January 2027, exports of lithium will no longer be allowed,” he said.

Zimbabwe’s lithium resources are largely found in spodumene ore, a critical component in manufacturing batteries for electric vehicles and renewable energy storage. The ban seeks to ensure that more of this value is captured domestically, with the government pushing for the local production of battery-grade lithium sulphate.

Chitando confirmed that two of the country’s major lithium producers—Bikita Minerals and Prospect Lithium Zimbabwe (PLZ), also known as Arcadia Lithium—are already investing in processing facilities to comply with the upcoming ban.

“Bikita Minerals and Arcadia Lithium are in the process of establishing lithium sulphate value addition facilities in order to beneficiate the lithium ores produced locally,” he said.

The policy shift is expected to transform Zimbabwe from a mere exporter of raw lithium into a supplier of processed materials, thereby creating jobs, stimulating industrialisation, and increasing earnings from the mineral.

In a related development, Information Minister Jenfan Muswere told journalists that Cabinet had reaffirmed the ongoing ban on chrome ore exports to drive domestic ferrochrome production.

“Cabinet reaffirmed the ban on the export of chrome ores and stressed the need to develop the ferrochrome industry locally,” Muswere said.
“The Ministry of Mines and Mining Development will be strengthening the implementation of the use-it-or-lose-it principle, and holders of all unutilised mining titles, chrome in particular, are requested to take note of the government position.”

In a bid to further deepen local value chains, the government has also introduced stricter requirements for new chrome mining licences.

“The issuance of new chrome mining titles exceeding 100 hectares will now be strictly linked to the development or expansion of furnace capacity,” Muswere added.

He also addressed the volatility of global ferrochrome prices, noting that the sector remains a vital part of Zimbabwe’s mining ecosystem, particularly in stainless steel production.

“There are about ten other ferrochrome producers whose capacity ranges from 3,000 to 84,000 tonnes per annum, with an estimated total capacity of 270,000 tonnes per annum,” Muswere said.

Among the flagship projects is the Palm River Project, commissioned in February 2025, which has already achieved operational production of 100,000 tonnes of ferrochrome per annum. The plant is targeting an eventual output of 1 million tonnes annually, positioning it as Zimbabwe’s largest ferrochrome producer.

“The Palm River Project now has an operational production capacity of 100,000 tonnes per annum and is in the process of ramping up to a design capacity of 1,000,000 tonnes of ferrochrome,” Muswere said.

The twin bans—on lithium concentrate and chrome ore exports—are central to Zimbabwe’s broader economic strategy focused on beneficiation, industrialisation, and employment creation.

By requiring mining companies to invest in local processing infrastructure, the government seeks to curb the export of unprocessed commodities and increase domestic value retention. The approach echoes a broader continental trend where African governments are taking a firmer stance on the exploitation of critical mineral resources.

Zimbabwe’s lithium reserves are among the largest in Africa, and global demand for the mineral continues to surge amid the energy transition. Officials believe that the export ban will help Zimbabwe reposition itself as a producer of high-value, refined lithium products.

Similarly, chrome and ferrochrome play a pivotal role in the global stainless steel industry. Through enhanced local smelting capacity, Zimbabwe is aiming to maximise returns from its chrome resources while reducing vulnerability to price shocks on the global market.

However, experts caution that the success of these policies will hinge on consistent implementation, investor confidence, and the pace at which supporting infrastructure—such as electricity and transport—develops.

If successful, the move could mark a turning point in Zimbabwe’s mineral strategy, unlocking new industrial capabilities and embedding the country more firmly in global value chains for electric vehicle and steel production.

In a related matter, Information Minister Jenfan Muswere said Cabinet reaffirmed the ongoing ban on chrome ore exports to drive domestic ferrochrome production.

“Cabinet reaffirmed the ban on the export of chrome ores and stressed the need to develop the ferrochrome industry locally,” Muswere said.
“The Ministry of Mines and Mining Development will be strengthening the implementation of the use-it-or-lose-it principle, and holders of all unutilised mining titles, chrome in particular, are requested to take note of the government position.”

In a bid to further deepen local value chains, the government has also introduced stricter requirements for new chrome mining licences.

“The issuance of new chrome mining titles exceeding 100 hectares will now be strictly linked to the development or expansion of furnace capacity,” Muswere added.

He also addressed the volatility of global ferrochrome prices, noting that the sector remains a vital part of Zimbabwe’s mining ecosystem, particularly in stainless steel production.

“There are about ten other ferrochrome producers whose capacity ranges from 3,000 to 84,000 tonnes per annum, with an estimated total capacity of 270,000 tonnes per annum,” Muswere said.

Among the flagship projects is the Palm River Project, commissioned in February 2025, which has already achieved operational production of 100,000 tonnes of ferrochrome per annum. The plant is targeting an eventual output of 1 million tonnes annually, positioning it as Zimbabwe’s largest ferrochrome producer.

“The Palm River Project now has an operational production capacity of 100,000 tonnes per annum and is in the process of ramping up to a design capacity of 1,000,000 tonnes of ferrochrome,” Muswere said.

The twin bans—on lithium concentrate and chrome ore exports—are central to Zimbabwe’s broader economic strategy focused on beneficiation, industrialisation, and employment creation.

By requiring mining companies to invest in local processing infrastructure, the government seeks to curb the export of unprocessed commodities and increase domestic value retention. The approach echoes a broader continental trend where African governments are taking a firmer stance on the exploitation of critical mineral resources.

Zimbabwe’s lithium reserves are among the largest in Africa, and global demand for the mineral continues to surge amid the energy transition. Officials believe that the export ban will help Zimbabwe reposition itself as a producer of high-value, refined lithium products.

Similarly, chrome and ferrochrome play a pivotal role in the global stainless steel industry. Through enhanced local smelting capacity, Zimbabwe is aiming to maximise returns from its chrome resources while reducing vulnerability to price shocks on the global market.

However, experts caution that the success of these policies will hinge on consistent implementation, investor confidence, and the pace at which supporting infrastructure—such as electricity and transport—develops.

If successful, the move could mark a turning point in Zimbabwe’s mineral strategy, unlocking new industrial capabilities and embedding the country more firmly in global value chains for electric vehicle and steel production.