Chinese secure full control of Arcadia Lithium Mine in Zimbabwe

Published: 4 hours ago

Chinese mining giant Zhejiang Huayou Cobalt has completed a full takeover of Zimbabwe's largest lithium operation, consolidating control over a strategic asset as the country intensifies efforts to promote local mineral processing.

The company confirmed in its results for the year ended December 31, 2025, that it has acquired the remaining minority stake in Prospect Lithium Zimbabwe, bringing its ownership to 100% and giving it full authority over production, processing and exports.

The transaction, valued at approximately US$32.11 million, included a premium of about US$12–13 million above book value, highlighting the importance of the asset within Huayou's global portfolio.

At the centre of the deal is the Arcadia Mine, located about 30 kilometres east of Harare. The mine has rapidly grown into Zimbabwe's largest lithium operation and is now a key pillar in Huayou's strategy to move up the lithium value chain.

The company has already committed significant investment to the project, including about US$300 million for a concentrator plant and a further US$400 million for a lithium sulphate facility. A 50,000-tonne lithium sulphate plant has been completed and entered trial production in the first quarter of the year, positioning Arcadia as an integrated processing hub.

Exploration efforts have also expanded the resource base, with lithium carbonate equivalent estimates rising from 1.5 million tonnes to 2.45 million tonnes, while ore grades have improved to 1.34%. These gains strengthen the mine's long-term production outlook and its role in global battery supply chains.

Huayou disclosed that 45% of its equity in the Zimbabwean unit has been pledged as collateral for financing, reflecting the complex funding structures underpinning large-scale mining investments.

The latest acquisition completes a process that began in 2022, when the company bought an initial 87% stake from Prospect Resources for about US$378 million.

Full ownership comes at a time when Zimbabwe is tightening regulations on lithium exports, restricting the shipment of raw concentrates in a bid to force investment into local processing.

Industry estimates highlight the stakes, with Zimbabwe earning about US$375 per tonne from raw lithium exports compared to as much as US$20,000 per tonne for battery-grade material.

As the country pushes towards exporting only processed lithium by 2027, Huayou's complete control of the Arcadia operation places it in a strong position to adapt to the evolving regulatory environment while deepening its role in the global energy transition supply chain.
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