Zhejiang Huayou waiting for 'right conditions' to explore Zimbabwe lithium plant

Zhejiang Huayou Cobalt Co. Ltd. has held talks with Zimbabwe's competition agency to explore the production of battery-grade lithium at the Arcadia project "only when the construction and economic conditions are right," Reuters reported June 30, citing a company statement.

Zimbabwe's Competition and Tariff Commission cleared Zhejiang Huayou's $422 million acquisition of Arcadia in April on the condition that production of lithium sulfate would be achieved within five years.

But Zhejiang Huayou said the target is not feasible due to a shortage of electricity and key materials.

Zhejiang Huayou told Reuters that the company is committed to exploring the development of refining infrastructure, but it will need the "right conditions" and support from local partners.

Zhejiang Huayou has outlined plans to build a concentrator plant to process ore but not a converter to produce battery-grade lithium. The company told Reuters that the project agreement did not include battery-grade lithium production.

Production at Arcadia is expected to start by 2023.

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