Graphite production in Mozambique for the electric vehicle (EV) battery industry reached only 11% of the government’s annual target by September 2024, reflecting a sharp 55% decline compared to the same period in 2023, according to official data.
From January to September, Mozambique produced just 34,899 tons of graphite against the government’s ambitious target of 329,040 tons for the year. By comparison, production for the first nine months of 2023 stood at 77,728 tons.
The decline in output is attributed to significant disruptions, including the suspension of operations at the GK Ancuabe graphite mine since 2023.
Additionally, Twigg Mining and Exploration, a local subsidiary of Australia-based Syrah Resources, halted mining activities due to a combination of factors: the growing international adoption of synthetic graphite, labor issues, and subsequent suspension of operations.
Historical data underscores the production decline, with Mozambique producing 97,346 tons of graphite in 2023, down from 165,932 tons in 2022 and 77,116 tons in 2021.
Syrah Resources reported ongoing disruptions at its Balama graphite mine in Cabo Delgado province, citing unresolved grievances from a group of local farmers over farmland resettlement.
These protests, exacerbated by widespread post-election unrest following Mozambique’s October 9 general elections, have hindered access to the site and delayed production campaigns.
Syrah explained in a November 11 report that the protests are impacting logistics, preventing the start of new production cycles, and limiting government responsiveness in resolving the situation.
The company has indicated that Balama operates on a campaign basis and may temporarily halt production due to maintenance and inventory constraints.
Syrah is actively engaging with Mozambican authorities to secure a resolution, emphasizing the need for stability to meet production demands.
Despite challenges, Syrah achieved a milestone in 2024 by exporting 10,000 tons of natural graphite from Balama to an Indonesian battery manufacturer.
This marked the first large-volume sale of graphite from the mine to a participant in the EV battery supply chain outside China.
The Indonesian buyer, BTR New Energy Materials, is constructing a $478 million battery factory, slated to begin production in 2024. Syrah anticipates further sales to BTR as demand grows.
In parallel, Syrah is developing a battery materials plant in Vidalia, Louisiana, which will be supplied with graphite from Balama.
Initial shipments began in April 2023, signaling the strategic importance of Mozambican graphite in global EV battery production.
Mozambique’s graphite sector faces significant hurdles, from operational halts to socio-political unrest, threatening its potential to meet ambitious production targets.
However, the global demand for natural graphite, coupled with strategic international partnerships, underscores the country’s critical role in the EV battery supply chain.
Collaborative efforts between stakeholders and the government are essential to stabilize operations and harness the industry’s full potential.
