Zimbabwe’s expanding lithium industry has come under renewed scrutiny after San Ding Lithium Private Limited suspended operations following allegations that a former senior executive diverted approximately US$3.65 million intended for the company’s operations.
According to prosecutors, the alleged financial losses have significantly disrupted the company’s activities, with authorities stating that none of the funds have been recovered. The case is currently before the courts and remains subject to judicial determination.
Chinese national Li Shigang, aged 58, appeared before a Harare magistrate after his arrest on 11 July. He has been charged with theft of trust property under Zimbabwe’s Criminal Law Code, with prosecutors also presenting an alternative charge under legislation relating to money laundering and proceeds of crime. At the time of publication, Li had not entered a plea and remains in custody pending the outcome of his bail application. As with all criminal proceedings, the allegations remain untested in court and he is presumed innocent unless and until proven guilty.
Court documents indicate that Li joined San Ding Lithium in 2022 as Chief Finance Officer and Commercial Manager. Prosecutors allege that his responsibilities included oversight of financial management, commercial settlements, payment approvals and broader operational finances. They further state that he invested approximately US$630,000 in the company before assuming his executive responsibilities.
The State alleges that Li, together with another individual identified as Zhu Guozhong, diverted approximately US$3.65 million through the use of fraudulent invoices and receipts. Prosecutors further allege that two company owned Toyota Hilux vehicles were sold without authorisation and that the proceeds were not returned to the company.
According to court filings, the alleged financial losses resulted in the suspension of San Ding Lithium’s operations. Investigators also allege that financial records, accounting books and reconciliation documents were not handed over following the resignation of the two individuals in January 2024.
The prosecution further claims that company representatives attempted over an extended period to recover the missing financial records and account for the alleged losses but were unsuccessful. These allegations will be examined through Zimbabwe’s judicial process.
The case emerges at a significant moment for Zimbabwe’s mining industry, particularly its lithium sector, which has become one of the country’s most strategically important industries. Zimbabwe possesses Africa’s largest known lithium resources and has attracted substantial international investment as demand for battery minerals continues to expand alongside the global energy transition.
Over the past several years, Chinese mining companies have invested billions of dollars in Zimbabwe’s lithium industry through acquisitions, mine development and mineral processing facilities. These investments have contributed to increased production capacity while positioning Zimbabwe as one of the world’s important suppliers of lithium bearing minerals used in electric vehicle batteries and energy storage technologies.
Zimbabwe’s Government has simultaneously pursued policies aimed at increasing domestic beneficiation and mineral processing to capture greater economic value from its natural resources. Measures introduced in recent years seek to encourage investment in processing infrastructure, industrial development, employment creation and technology transfer within the country rather than relying solely on the export of raw minerals.
The developments surrounding San Ding Lithium are therefore being closely observed not only because of the ongoing criminal proceedings but also because they underscore the importance of robust corporate governance, financial accountability and transparent management practices within Africa’s rapidly growing critical minerals industry. As competition for strategic minerals intensifies globally, governance standards remain an important factor in sustaining investor confidence while ensuring that mineral wealth contributes meaningfully to national and regional development.
The outcome of the case will ultimately be determined by Zimbabwe’s courts, which will assess the evidence presented by both the prosecution and the defence before reaching any conclusions. Until that process is complete, the allegations remain before the court and no findings of guilt have been made.
