Zimbabwe plans to start construction on a $270 million lithium concentration plant at its Sandawana mine in the third quarter of 2025, with commissioning expected in early 2027, Reuters reported.

The plant, developed by state-owned Kuvimba Mining House in partnership with two unnamed Chinese metals firms, will process up to 600,000 metric tons of lithium ore annually. The Chinese partners will operate the facility for at least five years before handing full control to Kuvimba.

Trevor Barnard, CEO of Kuvimba Mining House, told Reuters that the timing of construction depends on finalizing agreements and achieving “compatible industry conditions.”

Until the plant is operational, lithium ore is being stockpiled at Sandawana and transported to a processing facility in Gwanda owned by Tsingshan Holding Group, a major Chinese nickel and steel company. This approach maintains operations and revenue flow ahead of the new plant’s launch.

The announcement comes amid a nearly 90% drop in global lithium prices over the past two years, largely due to oversupply from China. Barnard said the plant’s early 2027 commissioning is timed to coincide with a market recovery driven by renewed demand for electric vehicles.

Zimbabwe, Africa’s leading lithium producer, plans to ban exports of lithium concentrates starting in 2027 to boost domestic processing and value addition. The government expects Chinese firms such as Zhejiang Huayou Cobalt and Sinomine to operate local processing plants by then.