US$400m for Huayou 's new lithium sulphate processing plant

Published: 23 September 2025

Chinese high-tech enterprise Huayou Cobalt is making a major investment in Zimbabwe's mining sector, committing approximately US$400 million to complete a state-of-the-art lithium sulphate processing plant at its Arcadia Lithium Mine. The project, under the management of subsidiaries Arcadia Technology Zimbabwe (ATZ) and Prospect Lithium Zimbabwe (PLZ), is expected to be completed in 2026.

The new facility is projected to produce more than 50,000 tonnes of lithium sulphate per year, marking it as the first of its kind in Zimbabwe and Africa, and the third globally. Lithium sulphate, derived from Goromonzi's rich lithium carbonate deposits, is a critical component in the production of lithium-ion batteries used in electric vehicles, renewable energy systems, and other modern technologies.

Speaking during a media tour of the site, Huayou Cobalt's Environmental, Social, and Governance (ESG) Director, Yu Long, highlighted the significance of the plant. "This plant is a cutting-edge facility and a first for both Zimbabwe and Africa. Its completion will create over 1,000 jobs locally and contribute significantly to national economic development," he said.

ATZ Managing Director Henry Zhu described the project as a "game changer" for the local economy, with the potential to create numerous employment opportunities. He also revealed plans for an independent thermal power plant capable of generating 70 megawatts. "This power plant will ensure uninterrupted energy supply to both ATZ and PLZ, reducing dependence on the national grid," Zhu said.

Huayou Cobalt's operations in Zimbabwe will utilize coal transported from Hwange through environmentally friendly production techniques, supporting the government's National Development Strategy 1 (NDS1) goals of economic growth and stability and its vision of achieving upper middle-income status by 2030.

Beyond its industrial investments, PLZ has been actively engaging in corporate social responsibility (CSR) initiatives within Goromonzi district. Since starting operations in 2022, the company has invested over US$30 million in community development, including constructing classroom blocks and staff quarters at Vhuta Primary School and donating furniture to other schools. Road infrastructure projects are also underway, with 8 km already completed and an additional 4 km from Majuru Shopping Centre to Arda Farm expected to be finished this year.

PLZ's PR Officer, Patience Chizodza, emphasized the company's commitment to community development: "We are continuously working to improve infrastructure and create opportunities for local youth, ensuring that our presence benefits the Goromonzi district as a whole."

Huayou Cobalt, a Chinese multinational with operations in multiple countries including the Democratic Republic of Congo, continues to expand its footprint in the global lithium and cobalt markets, positioning Zimbabwe as a key player in the continent's battery minerals industry.
- newsday

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