Mozambique Opens Chinese-Backed Graphite Processing Plant as It Expands Role in Global EV Battery Supply Chain
Mozambique has strengthened its position in the global battery minerals market with the inauguration of a 200,000 metric ton-per-year graphite processing plant at a Chinese owned mine.
The facility was officially opened by President Daniel Chapo as the Southeast African nation accelerates efforts to expand production and beneficiation of critical minerals.
According to the United States Geological Survey (USGS), global mined graphite production currently stands at approximately 1.6 million metric tons annually, with Mozambique ranked among the world’s leading producers.
Strategic Importance of Graphite
Graphite is a highly efficient conductor of heat and electricity and is an essential component in lithium-ion batteries used in electric vehicles (EVs), smartphones, and renewable energy storage systems.
While China holds the world’s largest graphite reserves and dominates both mining and processing, Mozambique has emerged as a significant alternative supplier in global markets.
The commissioning of a domestic processing plant represents a strategic shift for Mozambique moving beyond raw mineral exports toward value-added production.
Chinese Investment Driving Expansion
The project was developed by Chinese firm DH Mining at the Nipepe mine, with operations beginning in 2014. The company has invested approximately $200 million in mining and processing infrastructure.
The plant currently employs 890 workers and is expected to expand its workforce to around 2,000 employees during the second phase of development, according to company director Sang Shong.
Speaking at the inauguration, President Chapo emphasized Mozambique’s ambition to maximize returns from its natural resources:
“Today we are entering the world’s industrial map. We are no longer a supplier of raw materials, but a producer, processor and exporter of materials.”
The graphite expansion comes as Mozambique also resumes development of a $20 billion liquefied natural gas (LNG) project led by French energy major TotalEnergies, underscoring the country’s broader push to leverage its natural resource base.
Growing Graphite Activity in Cabo Delgado
Mozambique’s northern Cabo Delgado province has become a focal point for graphite investment. Other major operations in the region include:
Syrah Resources
AMG Critical Materials
Triton Minerals, which is advancing its Ancuabe graphite project
The clustering of graphite projects highlights Mozambique’s emergence as a key node in the global supply chain for battery-grade materials.
By investing in graphite processing capacity, Mozambique is positioning itself as more than a raw mineral exporter. The new plant strengthens the country’s role in the rapidly expanding electric vehicle and energy storage markets, while contributing to industrial development, employment generation, and foreign direct investment inflows.
As global demand for battery minerals continues to grow, Mozambique’s ability to scale production and maintain operational stability will be central to consolidating its status as a major supplier in the clean energy transition.
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