Tirupati, one of the few graphite producers outside of China, highlights the growing global dependence on China for essential minerals in the energy transition, such as flake graphite, crucial for lithium-ion batteries.

The company foresees an imbalance between graphite demand and supply by 2025, with continuous demand outpacing production growth, especially as the automotive industry ramps up electric vehicle production.

This scenario, combined with export restrictions from China, could have a positive impact on graphite prices, which have been declining since the beginning of the year.

Tirupati currently extracts natural graphite from its mines in Madagascar, with plans to expand its production.

The company aspires to become a major global supplier, aiming to meet approximately 8% of global demand by 2030, from its projects in Madagascar and those under development in Mozambique.

The situation in China plays a crucial role in Tirupati’s strategy. Announced export restrictions on graphite and their impact on electric vehicle battery supply chains could significantly influence the company’s development.

Mozambique and Madagascar, as major graphite producers outside of China, currently represent approximately 15% of global production.

The Mozambican government received reaffirmations of financing for the Liquefied Natural Gas (LNG) projects in the Rovuma Basin yesterday, with the resumption of TotalEnergies being almost certain by the end of the year.

This perspective was emphasized by the Minister of Economy and Finance, Max Tonela, in a meeting with the main creditors of the Rovuma gas projects.

“TotalEnergies is making diligent efforts to restart its project before the end of the year, which implies the disbursement of project financing funds,” Tonela said in that statement.

Tonela presented an “overview and some of the latest insights into the Mozambican economy,” highlighting the adverse context of climate disasters, the pandemic, terrorism, and the unfavorable global financial scenario of recent years.

“Despite the many challenges over the past two years, the country has been recovering its economic growth. Last year, the World Bank and the African Development Bank resumed their support for the State Budget,” he said.

According to Carta de Moçambique, Tonela emphasized the ongoing implementation of measures to improve public debt management, which “are resulting in better fiscal sustainability and efforts to improve the country’s credit rating.”

Between gas and energy transition

Then, the official spoke specifically about gas and energy transition, emphasizing that “the start of natural gas exports from the Coral Sul floating platform last year marked the beginning of a new era in the sector, and with the imminent creation of a sovereign fund to invest these revenues.”

In this domain, Max Tonela expressed confidence that Mozambique will be able to contribute to this transition while meeting global energy needs for socio-economic growth in a sustainable manner.

TotalEnergies is responsible for 25 percent of the Natural Gas Project (LNG) in Area 1 of the Rovuma Basin, Cabo Delgado province. This is the largest percentage of ownership in this venture, making the French oil company the main player in the operations.

A group of Chinese investors plans to build two new terminals at the port of Beira, in the province of Sofala, to increase the capacity for handling goods.

This involves a multinational market leader in African infrastructure construction that, in the first phase, intends to build two terminals – docks 11 and 13.

The group is also interested in building an industrial park in the district of Dondo, in the province of Sofala, to serve the hinterland countries, as well as an inland port on the Machipanda border, in Manica.

According to the newspaper Notícias, the investors have already visited Sofala and found that the current capacity of the Beira port is strained due to the flow of goods passing through that infrastructure.

This Sunday (22), the Prime Minister, Adriano Maleiane, on the penultimate day of his visit to China, held a meeting with these investors where he heard from the group’s president, Xiang Guangda, a request to expedite the project’s analysis.

On the subject, the Mozambican official assured that the institutions linked to the investment, especially the Agency for the Promotion of Investment and Exports (APIEX), are working on the files to expedite the process.