Zimbabwe's planned ban on the export of lithium concentrates from 2027 is a strategic move to accelerate the country's industrialization drive, officials said.
The country in southern Africa announced the ban on June 10.
The policy aims to shift Zimbabwe from exporting raw materials to producing higher-value battery-grade lithium products domestically, said Mines and Mining Development Minister Winston Chitando.
"We are moving to a stage where we are upgrading our lithium production to lithium sulfate, which, among its other uses, is a direct input into battery making. So, because of that capacity, which is now in the country, the export of all lithium concentrates will be banned from January 2027," the minister said.
Two mining companies are already in the process of building lithium sulfate plants, with more expected to follow suit in the wake of the export ban.
The latest development is in line with Zimbabwe's lithium beneficiation policy, which aims to unlock more revenue and create more jobs from the mineral.
The benefits of the ban are expected to be felt beyond the mining industry itself.
"Employment is probably secured and also the downstream industries may also awaken due to this policy move. You will be aware that beneficiation comes with a lot of work in terms of manufacturing from end-to-end, but also, the government needs to support this with necessary action, especially around energy," said Malone Gwadu, an economist analyst.
However, Zimbabwe is experiencing an electricity shortage and may not have capacity readily available to meet the energy demands of smelting and processing plants.
"Obviously, it's a capital-intensive area for there to be the machinery that beneficiates, so the government needs to complement that with tax benefits and tax holidays that incentivize investors for there to be that commercial value for them to be able to invest in these machines," Gwadu said.
The southern African country holds the largest lithium deposits in the continent and is one of the world's top producers of the strategic mineral. It has progressively increased output, which it hopes will eventually spur battery production.
Zimbabwe's 2027 lithium export ban to boost industrialization
