The Sandawana lithium investment, valued at roughly $700m, aims to move Zimbabwe's flagship mine up the battery-material value chain before a 2027 concentrate-export deadline. Mutapa Energy Resources, the mining and energy arm of the Mutapa Investment Fund, is driving a major beneficiation project at Sandawana Mine in Mberengwa, Midlands province. The plan includes a $300m lithium concentrator and a $400m lithium sulphate plant.
Construction of the $300m concentrator is expected to start before September 2026, with commissioning targeted for November 2027. This aligns with Zimbabwe's ban on unprocessed lithium concentrate exports from 2027, aimed at driving domestic processing and job creation. The project is a key pillar in the state's industrial strategy for lithium, positioning Sandawana as a core test case for Zimbabwe's push into higher-value lithium chemicals.
The planned $400m lithium sulphate plant would shift the operation from simple ore or concentrate supply into lithium chemicals used in battery-grade conversion chains. This could capture more margin within Zimbabwe rather than in offshore refineries. A financing plan for the sulphate plant is expected to be in place by December 2026. The project has geological backing, with nearly 40 million tonnes of confirmed lithium resources at Sandawana.
In the first seven months of 2026, Sandawana generated over $80m in revenue by supplying ore to a Gwanda-based lithium plant. These cash flows help anchor the near-term project pipeline, signalling that Sandawana is a meaningful contributor to Zimbabwe's growing lithium export base. Zimbabwe cleared about $1.59bn in new investment approvals in the second quarter of 2026, with mining and manufacturing taking nearly 80% of that total.
The Sandawana lithium investment also hinges on social licence. Mutapa is relocating 104 families from within the mine lease area to clear land for the $300m processing plant. The firm has completed several demonstration houses, inspected and approved by traditional leaders, and aims to finalise all 104 units by late September 2026. Each household is due to receive a new home.
According to an analyst, if Sandawana gets both the concentrator and sulphate plant away on time, Zimbabwe's lithium policy instantly looks more credible to long-term capital. The project has the potential to drive domestic processing and job creation, aligning with the state's industrial strategy for lithium. The investment is expected to have a significant impact on Zimbabwe's growing lithium export base.
The Sandawana lithium investment is a significant development in Zimbabwe's mining sector. With a focus on higher-value lithium chemicals, the project is poised to capture more margin within Zimbabwe. The investment also highlights the country's efforts to drive domestic processing and job creation, positioning Sandawana as a core test case for Zimbabwe's push into the lithium industry.
Key points
- The Sandawana lithium investment is valued at roughly $700m.
- The project includes a $300m lithium concentrator and a $400m lithium sulphate plant.
- The investment aims to drive domestic processing and job creation in Zimbabwe's lithium industry.
