Lithium

Tanzania hosts lithium mainly in hard-rock pegmatites and clay deposits in Dodoma and other central areas, with the Chenene Project being the main project, positioning the country as an emerging supplier to the lithium-iron battery value chain.^[3]

Lithium is classified among Tanzania's strategic critical minerals, alongside graphite, uranium, rare earth elements, copper, nickel, cobalt, and helium, all considered essential for high-tech and green technologies.

The Government has coupled upstream lithium exploration with a downstream industrial push, including the local production of lithium batteries by the private sector with support from international organizations, and a dedicated Critical Minerals Technology Hub planned in Dodoma to anchor the lithium-iron battery and green technology sectors.

Lithium Resource Base and Geology

Tanzania hosts lithium mainly in hard-rock pegmatites and clay deposits located in Dodoma and other central areas of the country.^[3]

The Chenene Project is identified as the main lithium project in Tanzania.^[3]

Lithium deposits in Tanzania are described as limited relative to the country's world-class nickel and cobalt endowments, but they sit within the same broader geological context as the East African Nickel Belt.^[3]

That belt hosts Kabanga, one of the world's largest undeveloped nickel sulphide deposits, with estimated ore reserves of 52.2 to 58.0 million tonnes grading 1.98% nickel, 0.27% copper, and 0.15% cobalt, providing complementary critical-metal inputs to any future battery-chemicals cluster.^[3]

Position within Tanzania's Critical Minerals Portfolio

Tanzania is endowed with a range of critical minerals, including graphite, uranium, rare earth elements, copper, nickel, cobalt, lithium, and helium, all essential for various high-tech and green technologies.

The country is still in the early stages of harnessing these resources, with several exploration and mining projects underway.

In 2023, there were 11 advanced projects for critical minerals ready for development,^[1] spanning graphite in Ulanga, Nachingwea, and Lindi, nickel in Ngara, heavy mineral sands in Pangani, rare earth elements and niobium in Songwe, and uranium in Namtumbo.

Alongside lithium, three graphite projects are already in production, namely Lindi Jumbo Graphite in Lindi district, Permanent Minerals in Mirerani (Simanjiro district), and GodMwanga Graphite Project in Handeni district.

Downstream Linkages to Battery Manufacturing

Tanzania's lithium strategy is tightly linked to its battery and green-technology industrialisation agenda.

The private sector, supported by international organizations, is introducing advanced manufacturing technologies for the local production of lithium batteries.

On the raw-materials side, Tanzania hosts an estimated reserve of 18 million tonnes of graphite, representing 6% of the world's graphite reserves, a vital component for producing anode materials for lithium-ion batteries.

One graphite operation carries an annual production capacity of 40,000 tonnes based on a confirmed reserve of 5.5 million tonnes, with production expected to last 24 years.

The Mahenge and Epanko graphite mines, once operational, are set to produce more than 60,000 tonnes each, and Tanzania is projected to produce over 300,000 tonnes of graphite within the next seven years, strengthening its role in the supply chain for lithium-ion batteries.

Policy Framework and Industrial Strategy

Critical Minerals Technology Hub

The national industrial plan mandates the establishment of a Critical Minerals Technology Hub in Dodoma to drive the lithium-iron battery and green technology sectors.

The Hub is expected to sit within a broader restructuring of Tanzania's Export Processing Zones, with 50% of all EPZs to be dedicated to high-tech and mineral-based production.

Local Integration and Value Addition

Alongside the lithium-iron battery push, the plan introduces a 30% local content quota in public procurement for certified domestic manufacturers.

It also targets an increase in Manufacturing Value Added (MVA) for MSMEs from 12% to 22% by June 2031, and aims to scale local steel, automotive, and electronics to capture 40% of regional exports.

Export Diversification Targets

The strategy seeks to reduce reliance on primary commodities such as gold and to raise the share of manufactured exports from 12% to 30% by 2031.

The Export Product Diversification Index is targeted to improve from 0.4 to 0.52, a trajectory to which processed lithium and battery products are expected to contribute.

Investment Opportunities

Lithium exploration and development in Dodoma's pegmatite and clay belts, anchored by the Chenene Project, offers early-mover exposure to a critical mineral tied directly to global battery demand.^[3]

Downstream, the planned Critical Minerals Technology Hub in Dodoma creates room for investment in lithium-iron battery manufacturing, cathode and anode processing, and integrated green-technology plants co-located with graphite feedstock from Lindi, Mahenge, and Epanko.

The mandate that 50% of EPZs be dedicated to high-tech and mineral-based production, combined with the 30% local content quota in public procurement, provides a captive market for locally produced lithium batteries and battery components.

The convergence of lithium (Dodoma), graphite (Lindi, Mahenge, Epanko), nickel and cobalt (Kabanga), and copper concentrates (75% grade from the first domestic copper processing plant launched in 2025) creates the conditions for an integrated battery-materials cluster within a single jurisdiction.^[2][3]

Adjacent opportunities include tax credits for firms achieving international environmental certifications, positioning battery-grade lithium processing as a candidate sector for green-standard incentives.

Last Update: May 2026

References

1. https://eiti.org/sites/default/files/TEITI%2015TH%20EITI%20REPORT.pdf (Guide reference #147)
2. https://baridigroup.com/baridi-group-identifies-significant-copper-deposits-in-mpwapwa-tanzania/ (Guide reference #150)
3. https://ir.lifezonemetals.com/news/press-releases/news-details/2025/Lifezone-Metals-Files-the-Feasibility-Study-Technical-Report-Summary-for-the-Kabanga-Nickel-Project-in-Tanzania/default.aspx (Guide reference #151)