Chinese metals producer Zhejiang Huayou Cobalt has completed the purchase of the remaining minority shareholding in Prospect Lithium Zimbabwe, giving the compa...
Chinese metals producer Zhejiang Huayou Cobalt has completed the purchase of the remaining minority shareholding in Prospect Lithium Zimbabwe, giving the company total ownership of the Arcadia Lithium Mine, one of Zimbabwe’s most important lithium projects.
The latest transaction gives Huayou full control over operations at Arcadia, including mining output, processing activities and future export decisions, according to the company’s financial results for the year ended December 31, 2025.
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The buyout was valued at about US$32.11 million. Reports indicate the deal was concluded at a premium above the book value of the stake, underlining the strategic value attached to the Zimbabwean asset.
Arcadia Mine is situated roughly 30 kilometres outside Harare and has developed into the country’s largest lithium producing operation.
The project has become central to Huayou’s international expansion plans as demand rises for lithium used in electric vehicle batteries and energy storage systems.
Huayou has already invested heavily in Zimbabwe through infrastructure at the mine.
This includes around US$300 million committed to a concentrator plant and a further US$400 million invested in a lithium sulphate processing facility.
Company disclosures show a 50,000-tonne lithium sulphate plant has been completed and entered trial production during the first quarter of the year.
That development positions Arcadia as a more advanced processing centre rather than only a raw ore export site.
Exploration work has also increased the estimated resource base at the mine.
Lithium carbonate equivalent resources reportedly rose from 1.5 million tonnes to 2.45 million tonnes, while ore grades improved to 1.34 percent.
These upgrades are expected to strengthen the long-term commercial outlook of the mine and support supply into international battery markets.
Huayou also disclosed that 45 percent of its equity in the Zimbabwean subsidiary has been pledged as security for financing arrangements.
The company first entered the Zimbabwe lithium sector in 2022 when it acquired an initial 87 percent stake from Prospect Resources for about US$378 million.
The latest purchase completes that takeover process and removes minority ownership interests.
The full acquisition comes as Zimbabwe continues tightening rules on exports of unprocessed lithium.
Authorities have moved to limit shipments of raw concentrates as part of a broader policy aimed at encouraging local value addition and mineral beneficiation.
Government officials have repeatedly said Zimbabwe should earn more from its mineral wealth through domestic processing instead of exporting low-value raw materials.
Industry estimates have suggested raw lithium exports can earn far less per tonne than battery-grade processed material sold into global markets.
With plans for stricter beneficiation targets by 2027, Huayou’s complete control of Arcadia may place the company in a stronger position to adjust quickly to changing policy requirements.
The development also reinforces Zimbabwe’s growing role in the global supply chain for critical minerals used in the clean energy transition.
