Prospect Lithium Zimbabwe Pays $50 Million in Taxes, Expands Value-Added Lithium Projects Despite Global Price Slump
Prospect Lithium Zimbabwe (PLZ), a subsidiary of Houyao Cobalt Group, has paid US$50 million in taxes to the Zimbabwean government, underscoring its position as a key contributor to the country’s economic growth.
Unlike many miners who export raw ore, PLZ processes lithium concentrate locally, ensuring more value remains within Zimbabwe. Despite a 90% collapse in global lithium prices over the past two years, the company has maintained operations, safeguarded jobs, and continued significant fiscal contributions.
“Some companies have scaled down due to the global price decline, but we have maintained stable operations. Since inception, we have created over 1,000 jobs, paid US$50 million in taxes, and generated over US$800 million in foreign exchange,” said Patience Chizodza, PLZ Communications Manager.
Expanding into Lithium Sulphate Production
Looking ahead, PLZ is advancing plans for lithium sulphate value addition projects, which are expected to generate up to US$200 million in foreign exchange annually. The company has already adopted advanced plant technology to drive this next growth phase.
Houyao Cobalt’s Global Strategy and Local Investment
Houyao Cobalt, PLZ’s parent company, is a global leader in battery precursor materials and battery recycling, with operations spanning Africa, Southeast Asia, and Europe. Its partnerships include collaborations with Ford, BMW, Mercedes-Benz, and LG Chem to support the electric vehicle (EV) and energy storage industries.
In Zimbabwe, Houyao Cobalt has invested over US$700 million through PLZ, including the US$422 million acquisition cost and an additional US$300 million to establish a concentrator facility.
This plant processes 4.5 million tonnes of ore annually, producing around 400,000 tonnes of lithium concentrate—cementing PLZ’s role as a cornerstone of Zimbabwe’s lithium sector.
A Resilient Operator in a Challenging Market
The global lithium market has been under pressure, with prices plunging more than 90% since late 2022 due to oversupply from China and weaker international demand. While many producers have scaled back, PLZ has maintained steady production, highlighting its resilience and long-term commitment to Zimbabwe’s mining industry.
Beyond tax payments, PLZ’s operations continue to create jobs, generate foreign exchange, and contribute to national development through royalties, levies, and infrastructure investment—reinforcing the company’s strategic importance in Zimbabwe’s resource-driven economy.
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