Zimbabwe's Prospect Lithium Launches 70MW Solar Project

Strategic Energy Investments Boost Zimbabwe's Mining Sector

Prospect Lithium Zimbabwe (PLZ) has initiated the construction of a 70-megawatt power station, marking a strategic move to enhance local power supply. This initiative is aimed at supporting PLZ, a subsidiary of China's Zhejiang Huayou Cobalt Limited, which is one of the world's largest producers of lithium-ion battery materials and a new cobalt materials producer.

The investment in a solar power facility is designed to reduce reliance on the national grid, which is facing increasing demand from the rapidly expanding economy, domestic users, and the mining sector. By focusing on renewable energy, PLZ is taking a step toward greater energy independence and sustainability.

PLZ is involved in lithium processing and aims to shift from exporting raw concentrates to adding value through higher-quality products. The company is constructing a lithium sulphate plant to process raw lithium concentrates into higher-value salts. This move aligns with broader industry trends where mining companies are investing in reliable energy sources to sustain their operations.

Expanding Capacity and Production

The PLZ Arcadia Mine near Harare has the capacity to process 50,000 tonnes of lithium sulphate annually. The company will begin producing lithium sulphate during the first quarter of 2026 from its new US$400 million plant in Goromonzi. This expansion is expected to significantly boost revenue, as lithium sulphate commands a higher market price than spodumene and petalite concentrates being produced by Prospect.

In recent times, several leading mining firms have taken steps to invest in energy projects, with a substantial focus on renewable energy solutions. These initiatives have been pivotal in alleviating the pressure on the country's main power utility, which is struggling to meet the mining sector's growing energy demands.

Renewable Energy Projects Across Zimbabwe

Zimplats, for instance, is in the process of establishing a 185MW solar power project and recently launched a 35MW plant. The investment in solar energy is expected to significantly bolster the company's energy autonomy while also contributing to its sustainability goals. Similarly, Caledonia Mining's Blanket Mine, located in Gwanda, successfully commissioned a solar plant with a capacity of 12.2MW in 2023 at a construction budget of approximately US$14 million.

Turk Mine in the Bubi District launched a 4.4MW solar farm, which is now powering its mining operations. In another development, Dinson Iron and Steel Company in the Chirumhanzu District has made strides toward energy self-sufficiency by developing an internal generation capacity after investing in a 50MW facility.

Cement producer PPC Zimbabwe has also hinted at establishing two solar power plants at a cost of US$40 million. The plants will have a combined capacity of 30MW, with one facility located in Colleen Bawn, generating 20MW, and the other in Bulawayo, with a capacity of 10MW. These solar plants will significantly enhance the energy supply to PPC's cement factories, ensuring stable production and reducing reliance on the national grid.

Government Support and Policy Changes

Speaking during a recent tour of PLZ's Arcadia Mine, Minister of Mines and Mining Development Winston Chitando highlighted the company's efforts to curb downtime at the mine. "The tour has revealed a massive construction being carried out by Prospect. They are constructing a 70-megawatt power station. This is coming from the investor's recognition of the need to augment power supply to the mine and undertake the necessary investments to maintain consistency in power supply," said Minister Chitando.

These developments reflect a broader trend within the mining and industrial sectors in Zimbabwe, where there is a growing recognition of the importance of sustainable and reliable energy sources to support economic growth and environmental stewardship.

National Renewable Energy Agenda

Amid these developments, Energy and Power Development Minister July Moyo recently outlined a broader renewable energy agenda, including the innovative Kariba Floating Solar Project, the 22MW Pomona waste-to-energy project, and several large-scale solar parks in Matabeleland, Midlands, and Mashonaland West provinces, which are being developed by independent power producers (IPPs).

PLZ expects to more than double its revenue once its lithium sulphate plant comes into production in the first quarter of 2026. The company announced that construction of the new lithium sulphate processing plant is nearing completion, with progress now at 75 percent. The facility is designed to produce approximately 60,000 tonnes of lithium sulphate per annum, marking a significant step forward in Zimbabwe's lithium value-addition drive.

Lithium sulphate commands a higher market price than spodumene and petalite concentrates being produced by Prospect. This development aligns with the Government's push for local beneficiation in the lithium mining sector.

In 2022, the Government banned the export of raw lithium to curb smuggling and promote domestic processing. It is considering extending the ban to include lithium concentrates from January 2027, as part of a broader strategy to industrialise and maximise economic returns from Zimbabwe's mineral wealth.