ZIMBABWE is actively negotiating with private investors to establish a lithium battery manufacturing plant, according to Finance minister Mthuli Ncube.
This move reflects the country’s eagerness to capitalise on its abundant lithium resources and add value to its mineral exports.
Boasting some of the world’s largest hard rock lithium reserves, Zimbabwe is strategically positioned to participate in the burgeoning electric vehicle and renewable energy industries.
In line with this vision, the government enacted regulations requiring lithium companies to process the mineral before export.
Further underlining its commitment to value-addition, the 2024 National Budget allocated US$20 million towards the battery facility project.
“We are looking for partners that we can work with,” Ncube told The Financial Gazette recently, underscoring the collaborative approach Zimbabwe seeks.
With lithium being hailed as the “new gold,” global interest in the mineral has skyrocketed.
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“We would want to go beyond what we have done so far by establishing a battery manufacturing facility working with the private sector,” Ncube stated, reiterating the importance of partnership.
While timelines for finalising deals remain flexible, the focus is on securing optimal agreements, according to the minister.
Lithium’s applications extend beyond electric vehicles, playing a crucial role in non-rechargeable batteries for diverse products like pacemakers, toys, and clocks.
Notably, minerals already contribute roughly 60 percent of Zimbabwe’s total export revenue and 16 percent of its GDP, highlighting the sector’s vital role in the national economy.
As Zimbabwe capitalises on its lithium wealth, there has been a surge in investor interest, particularly from China.
In the third quarter of 2023, Chinese businesses secured licences promising US$2,79 billion in investments, primarily in mining and energy, a testament to the country’s renewed attractiveness to international players.
Experts maintain that by harnessing its mineral riches judiciously through responsible and transparent investment decisions, Zimbabwe can break free from its past struggles and chart a course towards sustainable economic prosperity.
Meanwhile, the minister of State for Provincial Affairs and Devolution for Mashonaland East, Aplonia Munzverengwi, recently toured Prospect Lithium’s facilities and encouraged the company to consider battery manufacturing.
Prospect Lithium has expressed interest in the idea, acknowledging its potential benefits. However, the company emphasised that it would be a long-term endeavour requiring careful planning and investment.
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