Chengxin Lithium plans $476m sulphate plants in Zimbabwe and Nigeria

Chinese producer Chengxin Lithium intends to build lithium sulphate plants in Zimbabwe and Nigeria with a combined investment of about $476 million (roughly RMB3.2 billion), the company announced on 24 August.

Each plant is designed to produce 75,000 tonnes of lithium sulphate a year, and both have a planned construction period of 19 months, according to EnergyTrend.

The two projects

The Zimbabwean plant, budgeted at about $244 million, will be built in Buhera district, Manicaland province, by Max Mind Investments (Zimbabwe), an indirect wholly owned subsidiary. It will draw on Chengxin's Sabi Star lithium-tantalum mine, which mines 990,000 tonnes of ore a year and produces roughly 290,000 tonnes of concentrate.

The Nigerian plant, at about $233 million, will be built in Ilorin, Kwara State, by Chengxin Lithium (Nigeria) International. The company is already building a 500,000-tonne-a-year mineral processing plant in Nigeria and has said it plans to expand that capacity.

Chengxin said the projects were intended to use local lithium resources, localise processing and cut production and logistics costs.

Why now

For Zimbabwe, the logic is regulatory. The government froze concentrate exports in February, moved to a quota system in April and plans to ban concentrate shipments entirely from January 2027. Chengxin received one of the first export quotas in April. A sulphate plant is the route to keeping Sabi Star's output flowing once the ban takes effect, though a 19-month build means the Buhera plant will not be ready by January.

In Nigeria, the move adds to a wave of processing investment. The federal government has pressed for value addition, and a large Chinese-backed lithium processing facility was inaugurated in Nasarawa State in July.

Balance sheet

Chengxin is funding the expansion from a position of renewed strength. Its revenue for the first half of 2026 rose 355.94% year on year to RMB7.358 billion, and net profit attributable to shareholders climbed 220.30% to RMB1.012 billion, driven by higher lithium salt volumes and prices. Its 60,000-tonne-a-year lithium salt plant in Indonesia has reached full capacity.

What to watch

The announcement adds a fourth Chinese company to the list of Zimbabwean producers committing to sulphate, alongside Zhejiang Huayou Cobalt, Sinomine and Sichuan Yahua. The key variables are construction speed and whether Harare offers transitional arrangements for companies with plants demonstrably under way when the ban lands.

Sources

• EnergyTrend: 3.2 Billion Yuan! Chengxin Lithium Plans to Build Lithium Sulfate Projects in Zimbabwe and Nigeria, 25 Aug 2026
• CNBC Africa (Reuters): China's Yahua Industrial Group gets lithium export quota from Zimbabwe, 14 Apr 2026

Photo: Landscape in Buhera district, Manicaland, where Chengxin plans its Zimbabwe lithium sulphate plant. Kwedu, Wikimedia Commons, CC BY-SA 3.0.