Graphite production in Mozambique, which is essential for the manufacture of electric batteries, fell by 40% in the first half of 2024, according to the budget execution report released on Thursday, August 22. The drop in production, which reached just 34,800 tons, contrasts with the 58,700 tons recorded in the same period last year.
The report points out that the drastic reduction in production is due to the stoppage of activities at GK Ancuabe Graphite Mine since 2023 and the interruption of work at Twigg Mining and Exploration, a subsidiary of Australian mining company Syrah in Mozambique. Low global demand for graphite and price volatility on the international market contributed to this situation.
The production recorded in the first half of the year corresponds to only 11% of the target set by the Mozambican government, which hopes to reach 329,000 tons by the end of the year.
In April of this year, Syrah Resources, which operates in the district of Balama, Cabo Delgado, announced that it had begun supplying graphite to BTR New Materials, a battery manufacturer located in Indonesia, which purchased 10,000 tons of the ore. This transaction marked the first bulk sale of Mozambican graphite to a battery producer outside of China.
“This bulk sale follows a trial shipment of containers of natural graphite fines from Balama to Indonesia. This import is another important step in our sales diversification strategy,” said the mining company.
In addition, BTR New Materials Group is building a battery factory in Indonesia, valued at 478 million dollars, with production expected to start later this year, which could result in new sales of Mozambican graphite.
