Mozambique and Tanzania have emerged as potential sources for South Korea as it explores options in African nations to secure a supply of graphite. This move comes in response to China tightening its export controls on this critical material, which is extensively used in electric vehicle (EV) batteries.
The South Korean trade ministry has identified these African countries to address potential shortages. China, being the world’s leading graphite producer, recently introduced stricter export controls on select graphite categories. In last week’s report, Reuters explained China’s reasons for tightening its exports of graphite, citing national security concerns and a desire to protect the supply chain, particularly in critical industries like electric vehicle (EV) battery production.
China aimed to assert control over the global manufacturing of EV batteries and responded to growing pushback from other nations regarding its industrial practices, which includes potential tariffs on Chinese-made EVs and restrictions on semiconductor technology access.
The new export controls, set to take effect on December 1, will categorise highly sensitive graphite as “dual-use items.” This development has raised concerns among major South Korean battery manufacturers. While China asserts that these measures do not target any particular country, South Korea is taking steps to expand high-level diplomatic dialogue with China to ensure the smooth import of graphite.
Additionally, South Korea plans to expedite the launch of a domestic synthetic graphite factory scheduled to open next year. Simultaneously, efforts will be bolstered to develop silicon anodes as a potential alternative to graphite.
South Korea’s decision comes after discussions with representatives from prominent battery industry players, including LG Energy Solution, SK On, Samsung SDI, and Posco Future M. The country heavily relies on imports for the production of a wide range of products, from semiconductors to EV batteries.
Africa’s Significance in Meeting Growing Demand
Graphite is mostly used as an anode material in lithium-ion batteries. According to 360 Mozambique, its global demand is expected to increase by 500% by 2050 as efforts to scale up energy storage and electric vehicle adoption intensify.
Africa, boasting some of the world’s most substantial graphite reserves, stands ready to assume a pivotal role in meeting the global market demand. Numerous impactful projects are at the forefront, driving this development.
The Nachu project, situated in Tanzania, is a large-scale coarse-flake graphite operation with a projected average annual production capacity of 236,000 tons of graphite flake concentrate over a 15-year period.
Magnis Energy Technologies, an Australian company, is the driving force behind the development of this mine, which boasts a substantial mineral resource estimate of 174 million tons, positioning it as one of the world’s largest graphite reserves.
The Montepuez mine, situated in Mozambique’s Cabo Delgado province, is a graphite venture overseen by Tirupati Graphite. Following its acquisition in April 2023, the project holds substantial mineral reserves of 119.6 million metric tons and possesses the capability to annually produce 100,000 tons of flake graphite.
