Zimbabwe lithium company forced to shut down after Chinese investor and former executive accused of diverting $3.65 million

San Ding Lithium Private Limited, a Zimbabwean lithium company, was forced to shut down after prosecutors accused a Chinese investor and former executive of diverting $3.65 million meant for its operations.

• A Chinese investor and ex-finance chief, Li Shigang, was arrested in Zimbabwe for allegedly diverting over $3.65 million from San Ding Lithium Private Limited.
• Li and another suspect allegedly resigned without properly handing over financial records, and efforts to recover the missing files have been unsuccessful.
• The case highlights risks amid a surge in Chinese investment in Zimbabwe's lithium industry, as the country seeks to increase local processing and capture more value from its mineral resources.
• Prosecutors say these actions led to the company's operations being halted, with none of the funds recovered thus far.

The case involves suspected forged financial documents, missing company records and the sale of two company vehicles.

According to New Zimbabwe, Chinese national Li Shigang, 58, appeared before Harare magistrate Jesse Kufa on July 13 following his arrest on July 11.

He faces a charge of theft of trust property under Zimbabwe’s Criminal Law Code, with prosecutors listing an alternative charge under the Money Laundering and Proceeds of Crime Act.

However, Li has not entered a plea and remains in custody pending the determination of his bail application, while the allegations remain untested and he is presumed innocent until proven guilty.

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Prosecutors allege abuse of financial control

According to reports, Li joined San Ding Lithium in 2022 as chief finance officer and commercial manager.

The State alleges that the position gave him “full authority over core corporate operations”, including the collection and disbursement of funds, financial supervision, commercial settlements and payment approvals.

He invested $630,000 in the company on October 12, 2022, before gaining access to its financial systems.

Subsequently, prosecutors allege that Li and an accomplice, Zhu Guozhonga, diverted about $3.65 million intended for company operations using false receipts and invoices to conceal the transactions.

The State said the loss forced San Ding Lithium to halt operations.

In addition, the two men are accused of selling two company-owned Toyota Hilux double-cab vehicles and keeping the proceeds.

Zimbabwean police have placed the company’s total loss at about $3.65 million and said none of the funds has been recovered.

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Financial records remain missing

The State alleges that Li and Zhu resigned from San Ding Lithium in January 2024 without completing a formal handover.

They allegedly failed to surrender financial records, accounting books and reconciliation reports.

Prosecutors further claim that company director Chen Dehua and employee Chen Xingmei intercepted Li while he was attempting to remove financial records from the company’s premises.

Court documents state that Chen made repeated attempts over the next two years to recover the records and trace the missing funds. However, the accused allegedly failed to cooperate or account for the money.

San Ding Lithium is a Zimbabwean lithium mining and processing company backed largely by Chinese investment. It extracts and processes lithium ore used in batteries for electric vehicles and electronic devices.

Chinese investment expands in Zimbabwe’s lithium sector

The case comes amid growing Chinese investment in Zimbabwe’s lithium industry, a key part of Africa’s expanding role in the global electric vehicle and battery supply chain.

Major Chinese investors include Zhejiang Huayou Cobalt, Sinomine Resource Group, Chengxin Lithium Group, Yahua Group and Tsingshan Holding Group.

Chinese companies have invested more than $2 billion in Zimbabwe’s lithium sector since 2021.

Zimbabwe, Africa’s largest lithium producer, exported about 1.13 million tonnes of lithium-bearing spodumene concentrate to China in 2025.

Meanwhile, the government is pressing mining companies to increase domestic processing. Harare says this will create jobs, expand industrial capacity and allow Zimbabwe to retain more value from its mineral resources.