Maputo, July 23, 2026 (Lusa) - The mining company Syrah Resources produced just 2,000 tonnes of graphite at the Balama mine in Cabo Delgado during the second quarter, postponing a production drive until the current quarter due to weak international demand outside China.
According to the Australian-based company's quarterly results presentation, released on Thursday and seen by Lusa, the reduction in activity at Balama reflects current conditions in the international natural graphite market. This raw material, exported from northern Mozambique, is used in the production of batteries for electric vehicles, including supplying the anode materials facility that Syrah is developing in the United States.
Syrah explains that the reduced production resulted from the decision to postpone a production drive until the third quarter of 2026, noting that «production levels at Balama were moderate in response to reduced orders for natural graphite sales outside China».
During the period under review, the mine produced 2,000 tonnes of graphite and sold 7,000 tonnes, whilst the average selling price rose by 17% compared with the previous quarter, to $736 per tonne (€633).
In May, Syrah adopted a strategy to expand the Balama mine, with the aim of achieving annual production of between 200,000 and 240,000 tonnes of graphite in the medium term.
The company believes that the markets for graphite and battery anode materials outside China are undergoing a period of adjustment, with many customers currently prioritising price over diversification of supply sources.
«Diversification of natural graphite supply is a lower priority than price for customers facing political uncertainty,» it states.
Despite the current situation, Syrah maintains that long-term demand remains favourable, driven by the expansion of the global electric vehicle battery industry and by policies adopted by the United States and other countries to reduce dependence on the Chinese supply chain.
The company cites forecasts suggesting that global battery production outside China is set to grow by around 13% per year until 2040.
Syrah regards Balama as a strategic asset in its integrated battery materials production chain, serving as the main source of raw materials for its North American plant in Vidalia, which is currently finalising qualification tests for the commercial production of anode materials.
The company expects to commence commercial sales of this product to battery and electric vehicle manufacturers in the second half of this year and to achieve positive operating cash flows from the second half of 2027.
The company adds that it continues to work on strategic financing proposals aimed at strengthening liquidity and supporting the development of its assets in Mozambique and the United States.
The Balama operation also continues to represent one of the main private economic contributions in Cabo Delgado province. According to the company, its cumulative economic contribution to Mozambique amounts to $611 million (€524 million), in addition to $4.4 million (€3.8 million) invested in community development projects.
Syrah, the concessionaire of the Balama mine, announced in May that it intended to significantly increase annual graphite production to meet the growing demand associated with the battery industry, highlighting at the time that the Mozambican mine holds the largest known deposit of high-quality graphite outside China and has an estimated lifespan of over 50 years.
PVJ/AYLS // AYLS
Lusa
