Proposed $2.83bn Chinese investment in industrial ...

Proposed $2.83bn Chinese investment in industrial park latest high investment in Zimbabwe as global lithium demand rises

Zim Now Writer

Zimbabwe’s approval of the development of a $2.83bn battery-metals park, proposed by a group of Chinese investors signals the latest high value investment in the country as global lithium prices and demand rise. Prices are rising on growing shift to electric vehicles.

“The goal of the New Energy Special Economic Zone Industrial Park is to develop an industrial value chain represented by new energy metals such as lithium and nickel, to increase the added value of the mineral products and form a new energy production base that embraced the world while based in Africas,” reads a statement from Eagle International.

Zimbabwe’s lithium deposits are attracting much interest due to surging lithium prices and

Chengxin Lithium Group and Sinomine Resource Group have agreements to explore for lithium. Zhejiang Huayou Cobalt is developing the $300m Arcadia project that it acquired for $400 million this year. Premier African Minerals Limited just announced positive prospects for its Zulu lithium and tantalum project in Insiza.

The 30-50km2 battery-metals park which is proposed for Mapinga will include two 300MW power plants to provide electricity to the various refineries.

Slated for completion by the end of 2025, the integrated industrial park will comprise $1bn nickel-sulphate plant, a $500m nickel-chromium alloy smelter, and a $450m lithium-salt plant, Eagle International said in documents availed to the media.

The processing centre is set to create wealth for the country through value addition as well as creation of jobs and economic revival through up and downstream activities.

Zimbabwe Deputy Mines Minister Mr Polite Kambamura said an agreement is likely to be signed this week between Eagle International and Pacific Goal for the proposed plan.

Nickel-chromium alloys are used in in the production of stainless steel while lithium carbonate, lithium hydroxide and nickel sulphate are raw materials used for the production of lithium batteries required for solar-energy storage.

China’s is now Zimbabwe’s single largest source of FDI with interest across all sectors including mining, agriculture and manufacturing overtaking retail, which was the entry point for the majority of Chinese businesses when the country initiated its Look East policy.