Mozambique: Syrah Resources to supply graphite to Japan – AIM report

The Australian mining company Syrah Resources, which operates a graphite mine in Balama district, in the northern Mozambican province of Cabo Delgado, has announced that it will supply, in the next seven years, between 34,000 and 68,000 tons of natural graphite to the Japanese market. The announcement follows an agreement signed by Syrah Resources and its Canadian counterpart, Next Source Materials. In a statement addressed to the markets, Syrah Resources explained that the graphite extracted in Balama will initially be sent to an anode production facility in Abu Dhabi, United Arab Emirates, and will subsequently supply a Japanese customer in the downstream sector, operating in the electric vehicle battery manufacturing chain.

The process will begin next June. “The agreement reinforces the critical importance of Balama’s natural graphite to the anode and battery supply chain outside China. Balama has a unique position as a major supplier of high-quality, high-volume natural graphite outside China”, reads the note.

The announcement comes at a time of operational recovery for the Balama mine, which produced 26,000 tons of graphite in the third quarter of 2025, following a six-month shutdown caused by mass demonstrations that degenerated into rioting in 2024. According to Syrah’s chief executive, Shaun Verner, the main operational highlights of the third quarter included “the safe resumption of operations in Balama after the long period of inactivity and the completion of large-volume shipments to Indonesia and the United States, in addition to new container shipments.” The company also announced that it is developing a factory in Vidalia, in the United States, to produce anodic material for electric vehicle batteries, “which will be supplied with graphite from Mozambique, reinforcing the vertical integration of the value chain.” Despite this new strategic partnership, official data indicate that national graphite production for the battery sector fell by 64 per cent in 2024, settling at 34,899 tons, one of the lowest levels in recent years. During the same period, the company sold and shipped 24,000 tons to international customers at an average price of 625 US dollars per ton.