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Huayou will begin production of lithium sulphate in Zimbabwe by early 2026

Huayou will begin production of lithium sulphate in Zimbabwe by early 2026

The company announced on Thursday that Zhejiang Cobalt, a Chinese company, will begin producing lithium sulphate in the first quarter 2026 at its $400 million plant located in Zimbabwe. Zimbabwe is pushing for more local processing.

A senior executive told a group of journalists that the newly-completed plant at Huayou’s Prospect Lithium Zimbabwe’s Arcadia Mine has a capacity of more than 50,000 metric tonnes of lithium sulphate per year.

Lithium Sulphate is a product intermediate that can be refined to a battery grade material, such as lithium hydroxide and lithium carbonate.

Henry Zhu, general manager of Prospect Lithium Zimbabwe, told reporters that the company would begin production at the start of next year.

Zhu continued, "The amount of lithium sulphate will be greater than 60,000 tons. However, it depends on the configuration of this plant because it's brand-new."

Zimbabwe, Africa's largest lithium producer, has encouraged miners to process this mineral in Zimbabwe to help boost its economy.

Huayou acquired Arcadia Lithium Mine for $422 Million in 2022. In 2023, Huayou commissioned a 300 million dollar lithium concentrator.

Sinomine, Chengxin Lithium Group and Yahua Group are among the Chinese companies that dominate Zimbabwe's mining of lithium. They produce concentrates, which they then ship back to China.

Huayou export 400,000 tons lithium concentrate to Zimbabwe by 2024

In order to encourage more local processing, the country in southern Africa will ban exports of lithium concentrates by 2027.

Sinomine announced plans to build an $500 million lithium-sulphate facility at its Bikita Mine in Zimbabwe. (Reporting and editing by Nelson Banya, Lincoln Feast, and Chris Takudzwa Muronzi.

(source: Reuters)