Mozambique wants to produce more graphite for electric car batteries

According to data from the proposed law relating to the Economic and Social Plan and State Budget (PESOE) for 2025, under analysis in the Assembly of the Republic, the Government's forecast points to production in Mozambique this year of 41,879 tonnes of graphite, thus recovering part of the 64% drop last year, compared to 2023, when it fell to 34,899 tonnes.

In 2023, this production amounted to 97,346, after the record, in the previous year, of 165,932 tons, and 77,116 tons in 2021, according to the official history.

"For graphite, the growth forecast is 20%. This increase takes into account the entry of DH Mining production in Niassa", highlights the budget proposal, referring to the start of activity by a Chinese group in the Nipepe district on May 5 and the prospect of extracting 200 thousand tons per year when in full production.

Meanwhile, the Australian mining company Syrah announced on May 6 that it had regained access to the graphite mine it operates in Balama, Cabo Delgado, northern Mozambique, about five months after invoking "force majeure" due to the worsening of post-election demonstrations, a situation that resulted in three quarters without exports of that mineral.

In a statement to the markets, Syrah said that the protests at the mine, which were affecting activity, had ended and access to the site had been reestablished, following intervention by the Mozambican authorities, who removed the last "illegal protesters" over the weekend.

"Following a formal agreement signed between farmers, Mozambican government authorities and the company, most protesters stopped protesting in Balama in April 2025. A small group of people continued to block access to the site without legitimate reason, nor any complaint against Syrah," reads the same information from the mining company.

The company is "mobilizing support teams" to the site of the operation, for "inspection and maintenance" activities, promising an update soon on the resumption of operations in Balama and product shipments.

The Australian mining company announced on December 12 that it had invoked "force majeure" due to the worsening of demonstrations and challenges to the results of the general elections of October 9, 2024 - which have already caused around 400 deaths, in addition to the destruction of public and private equipment -, which were conditioning activity at the Mozambican graphite mine in Balama.

The term "force majeure" is a legal concept that refers to external, unpredictable and unavoidable events that prevent the fulfillment of contractual obligations.

The Australian firm is also building Vidalia, in the United States of America, a battery material factory, which will be supplied with Mozambican ore, in this case with two tons sent in April last year.

Graphite production in Mozambique, for electric car batteries, fell 64% in 2024, to 34,899 tonnes, one of the lowest records in recent years, according to government data reported by Lusa in February.

According to the Ministry of Finance's budget execution report for 2024, the reduction, which corresponds to just 11% of the target of 329,040 tons of graphite set for the entire year, was mainly due to the shutdown of activities at GK Ancuabe Graphite Mine in 2023.

"As well as the interruption of the activities of the company Twigg Mining and Exploration [of the Australian group Syrah], due to the introduction of synthetic graphite into the international market, combined with labor problems in the company that culminated in the stoppage of mining operations", reads the document.