Source: UK firm targets US$500m lithium investment – herald
Ivan Zhakata
Herald Correspondent
British-registered firm, XI8 Capital Plc, is projecting a five-year investment of approximately US$500 million to develop lithium oxide reserves in Insiza District.
The company, listed on the Austrian and German stock exchanges, plans to establish a modern extraction and processing operation anchored on sound environmental, social and governance (ESG) practices.
The firm is actively pursuing a stake in Zimbabwe’s lithium sector as confidence in the country’s mining industry continues to firm, following the lifting of financial restrictions by the European Union and President Mnangagwa’s “open for business” mantra.
XI8 Capital is in negotiations with a local partner to secure an interest in licenced lithium deposits covering an initial 600 hectares in Insiza, which spans approximately 8 221 square kilometres in Matabeleland South Province.
Initial exploratory work in Insiza has revealed high-grade, near-surface lithium deposits, giving XI8 Capital confidence that a capital raise for further exploration could lay the foundation for a full-scale lithium extraction, processing and value addition venture.
The investment interest comes at a time when European markets are increasingly driven by demand for clean energy storage and environmentally sustainable alternatives.
XI8 Capital Plc said community participation was central to the sustainability of its investment.
“We appreciate the need for direct participation by the local community, whose economic benefit and goodwill will only serve to sustain and grow our investment into the long term,” the company said in a recent statement.
“European markets are not only interested in reduced carbon footprint from energy consumption, but are concerned by any exclusion of local communities from mineral resource-driven development of alternative clean energy sources that local lithium deposits can guarantee.”
The proposed joint venture has been welcomed by the local community, represented by traditional leader Dambisa Mahubo Mafu, Chief Maduna, who has been actively seeking foreign investment into the resource-endowed district.
Chief Maduna said the project would bring far-reaching benefits to both the local community and the country at large.
“It is an investment that is going to improve the livelihoods of my people, but not only my people but Zimbabwe in general. I am very happy and looking forward to that partnership,” he said.
Chief Maduna added that the development dovetails with the country’s broader economic vision.
“When you talk of improving people’s livelihoods, that goes in tandem with the national vision. As locals, we must also contribute towards that vision,” he said.
He added that successful implementation would result in tangible infrastructure development in his area, including new clinics, roads and schools.
The chief also confirmed that the community has been extensively engaged on the project and was ready to embrace the investment.
“I have been engaging with them for a long time and the people are aware that this is a good investment that will improve their lives through employment creation. They are welcome, and they work closely with village leadership,” he said.
Villagers expressed similar optimism.
Mr Tinashe Ndlovu said the investment would open up opportunities for local youths, while Mrs Nomsa Sibanda described the lithium venture as a turning point for the district, expecting it to transform the community through improved infrastructure and living standards.
Renewed investor appetite comes as the country’s mining sector records strong growth, with mineral export earnings reaching US$3,4 billion in 2025 — a 14 percent increase from 2024, according to the Minerals Marketing Corporation of Zimbabwe (MMCZ).
Lithium accounted for US$571,6 million of that total, reinforcing the country’s strategic role in the global battery minerals market.
According to the United States Geological Survey, Zimbabwe is now ranked as the fourth-largest global producer of lithium, accounting for an estimated 10 percent of the world’s mined lithium in 2025.
The Government’s recent ban on the export of raw minerals, including lithium concentrates, has further strengthened the thrust towards beneficiation and value addition.
Industry observers note that the move has helped firm global lithium prices while enhancing prospects for domestic processing and employment creation.
Mines and Mining Development Minister, Dr Polite Kambamura, said Government assesses growing investor confidence through several concrete indicators.
These include increased foreign direct investment inflows, a marked rise in applications for mining and exploration licences, ramped-up mineral production volumes, and significant new investments in extraction and beneficiation.
“Recently, we noticed a high appetite for partnerships with Government entities,” he said. “Collectively, these trends affirm that Zimbabwe remains an attractive and competitive mining investment destination under the Second Republic.”
To ensure investment translates into sustainable economic growth and tangible community benefits, Minister Kambamura outlined a comprehensive suite of policy measures.
“Chief among these is the deliberate policy on mineral value addition and beneficiation, which ensures that the country captures greater value from its mineral endowment rather than exporting raw materials.
“Government is also strengthening local content participation across the mining value chain, requiring investors to prioritise the procurement of local goods and services,” he said.
The minister emphasised that local employment, skills development and knowledge transfer form the foundation for empowering Zimbabweans. Government is also enforcing robust ESG standards to ensure mining operations are conducted responsibly and that host communities benefit directly through development programmes, infrastructure projects and corporate social investments.
“In addition, Government is supporting the formalisation and capacitation of artisanal and small-scale miners, so that they too contribute meaningfully to the national economy within a regulated and sustainable framework.
“These measures are firmly anchored in President Mnangagwa’s Vision 2030 and the National Development Strategy 2. They are designed to leverage Zimbabwe’s vast mineral resource base to drive industrialisation, create meaningful employment, grow export earnings and improve livelihoods for mining host communities and the nation at large,” Minister Kambamura added.
Zimbabwe’s mining laws encourage community participation in resource projects, following the repeal of the previous 51 percent indigenisation threshold that had been viewed as a deterrent to foreign direct investment.
Growing global demand for critical minerals continues to position Zimbabwe as a key investment destination, with lithium expected to play a central role in driving economic growth and community development.
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