China has emerged as the dominant force in Zimbabwe’s fast-growing lithium industry, according to a new report that warns of rising environmental, labour and governance concerns linked to the sector’s rapid expansion.
The latest study by the Zimbabwe Environmental Law Organisation (ZELO), Mine to Market for Critical Minerals: Zimbabwe’s Lithium Supply and Value Chain Situational Report, finds that Chinese companies now control most major lithium mining and processing operations in the country.
ZELO says this dominance has been formalised through the creation of a Chinese Lithium Producers Association, established to advance the collective interests of Chinese investors.
“Findings from mine visits, literature reviews and interviews showed that Chinese corporations overwhelmingly dominate Zimbabwe’s lithium sector,” ZELO said. “In 2023 alone, Chinese companies secured investment deals worth US$2.79 billion, underlining their expansive presence across the supply and value chain.”
During a joint ZELO–Chamber of Mines meeting in Victoria Falls in 2024, the Association raised several policy concerns affecting their operations. These included the retrospective increase in special capital gains tax from 5% to 20%, the high cost of doing business, persistent power shortages, limited access to water for processing, and continued policy uncertainty around taxation and export regulations.
While Chinese investment has helped revive Zimbabwe’s lithium industry, ZELO found widespread concerns over poor labour standards and environmental violations, particularly among medium- and small-scale Chinese operators across the lithium, gold, coal and chrome sectors.
Reported issues included non-compliance with Environmental Impact Assessment (EIA) regulations, dust pollution, water contamination from mine effluent, low wages, inadequate protective equipment and allegations of worker abuse and discrimination.
The report warns that such malpractices have contributed to the perception that Chinese companies have a poor human rights and environmental record in Zimbabwe. It says this presents reputational risks for the country’s lithium exports at a time when global supply chains increasingly prioritise strong Environmental, Social and Governance (ESG) standards.
Although Australian and British companies also operate in the sector, ZELO says Chinese dominance has created an imbalance that weakens competition and reduces Zimbabwe’s bargaining power.
“This imbalance restricts the country’s ability to derive optimal value from its lithium resources,” the organisation said. “It also exposes Zimbabwe to external risks linked to fluctuations in Chinese global investment or commodity demand.”
Data from the Minerals Marketing Corporation of Zimbabwe (MMCZ) highlights the stark value gap between raw and refined lithium. A tonne of lithium concentrate with 4%–5.5% Li₂O content sells for between US$300 and US$600. By contrast, refined lithium hydroxide or lithium carbonate can fetch more than US$26,000 per tonne.
ZELO says this disparity underscores the need for Zimbabwe to prioritise domestic production of high-value, refined lithium products instead of exporting low-value concentrate.
To advance this, ZELO recommends increased investment in beneficiation, production of industrial by-products such as sodium sulphate anhydrous and alumina silicate, and stronger local content rules to promote skills transfer and technology adoption. It also calls for tighter enforcement of labour, safety and environmental regulations and strategic partnerships with non-Chinese investors to diversify markets.
With global demand for clean-energy technologies rising, ZELO says Zimbabwe has a strategic opportunity to use its lithium reserves to drive industrialisation and support green economic growth.
“Developing integrated lithium value chains, from extraction and refining to manufacturing and recycling, will boost exports, create jobs, increase revenue and position Zimbabwe as a regional hub for sustainable mineral-based development,” the report said.
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