Maputo, Mar. 2, 2026 (Lusa) - The Balama mine in Mozambique will supply up to 68,000 tons of graphite, used in electric car batteries, to the Japanese market over the next seven years, Australian mining company Syrah announced on Monday.
“The agreement reinforces the critical importance of Balama's natural graphite to the anode and battery supply chain outside China,” explains Syrah, concessionaire of that mine in Cabo Delgado, northern Mozambique, in a statement to the markets announcing the signing of a multi-year contract to supply natural graphite to NextSource.
According to the information, the contract with NextSource provides for the delivery of 34,000 to 68,000 tons of graphite over the next seven years, starting in June, to the battery anode plant being installed in Abu Dhabi, United Arab Emirates, and then to supply a “Japanese customer in the downstream sector.”
“The supply contract highlights Balama's unique position as a major supplier of high-quality, high-volume natural graphite outside China,” Syrah added.
The mining company explains that NextSource is a battery materials company based in Toronto, Canada, which owns the Molo graphite mine in Madagascar and is “prioritising the development of a large-scale anode materials facility in the Middle East.”
The Balama mine in Mozambique produced 26,000 tons of graphite in the third quarter of 2025, recovering after a six-month shutdown caused by social unrest in the country, supplying the North American and Indonesian electric vehicle battery markets, Lusa reported at the end of October.
According to information on third-quarter 2025 performance sent to the markets by Syrah, the mine also sold and shipped a total of 24,000 tons of graphite to customers at an average price per ton of $625 (€536) during the same period.
The Balama mine resumed exports of natural graphite for electric car batteries after a six-month halt caused by social unrest, Syrah announced on 24 July, withdrawing the ‘force majeure’ clause.
The term ‘force majeure’ is a legal concept referring to external, unforeseeable, and unavoidable events that prevent the fulfilment of contractual obligations.
“With the resumption of normal operations at Balama and the logistics supporting product transportation and shipment loading, the company's Mozambican subsidiary, Twigg Exploration and Mining, has notified the Mozambique government that it has removed the ‘force majeure’ declaration provided for in the Mining Agreement,” reads the information sent to the markets by Syrah at the time.
According to previous information from Syrah's chief executive, Shaun Verner, the mining company's “operational highlights” in the third quarter “included the safe resumption of operations in Balama after the long period of inactivity and the completion of large-volume bulk shipments to Indonesia and the United States, in addition to new container shipments.”
The Australian firm is building Vidalia, an electric car battery materials factory in the United States, which will be supplied with Mozambican ore.
Overall, graphite production in Mozambique for electric car batteries fell 64% in 2024 to 34,899 tons, one of the lowest figures in recent years, according to government data reported by Lusa in February.
PVJ/ADB // ADB.
Lusa
