Zimbabwe has witnessed a surge in income from lithium exports, generating approximately $209 million in revenue over nine months, according to the Ministry of Mines in the country.
Lithium is poised to become Zimbabwe’s third-largest mineral export after gold and platinum group metals, with earnings of $2.46 billion and $2.27 billion, respectively, in the previous year.
As the leading lithium producer in Africa, Zimbabwe is banking on the growing demand for this essential mineral, crucial for renewable energy storage, to help revive its struggling economy.
Notably, the third quarter saw Chinese companies secure licences for potential investments of around $2.79 billion in Zimbabwe, primarily in the mining and energy sectors.
The government aims to develop some of the continent’s largest lithium deposits and address the country’s power supply challenges with this influx of investment.
This proposed investment represents a substantial increase compared to the $271 million committed during the same period in the previous year and surpasses the United Arab Emirates’ efforts, which secured licences for investments amounting to $498.5 million.
In total, the combined value of investment licences issued during this period reached $3.41 billion.
Chinese companies have shown a keen interest in Zimbabwe, with a focus on mining, particularly lithium mines crucial for electric vehicle batteries.
They are also involved in upgrading and constructing power facilities in the country. Out of the proposed investment, $2.8 billion is allocated for energy initiatives, while $411 million is directed towards mining.
Several projects in Zimbabwe are backed by Chinese investment, including a $2.3 billion energy and mining complex in Mapinga, responsible for mineral processing.
Additionally, a 500-megawatt solar energy project is in the works. These investments are expected to significantly boost Zimbabwe’s lithium production and help drive economic growth.
Source: Business Insider Africa