South Korea’s POSCO International Corp. is broadening its footprint in Africa’s secondary battery raw material sector, with plans to secure an annual supply of 90,000 tons of natural graphite.
The company said on Monday that it has recently signed two memorandums of understanding (MOUs) in Madagascar and Tanzania to acquire essential mineral resources.
On Aug. 28, in a ceremony held in Antananarivo, Madagascar, POSCO International and the Canadian mining company NextSource signed a MOU for joint investment in NextSource’s Molo graphite mine. Notable attendees included Jeong Tak, Vice Chairman of POSCO International, and Craig Scherba, CEO of NextSource.
The Molo mine is one of Madagascar’s largest graphite reserves, with an estimated 22 million tons. Under this MOU, POSCO International is expected to secure roughly 30,000 tons of natural graphite and around 15,000 tons of spherical graphite annually for the next ten years.
POSCO International announced a second MOU signed on Sept. 1 in Dar es Salaam, Tanzania. The MOU aims for joint investment between POSCO International, Australia’s Black Rock Mining, and Faru Graphite Corporation. Through this, the company intends to participate in Black Rock Mining’s capital increase and extend its natural graphite purchase volume to 60,000 tons per annum.
Black Rock Mining is the world’s second-largest natural graphite mine. POSCO International had earlier, in May, invested $10 million in Black Rock Mining’s Mahenge mine, further solidifying the relationship.
The secured graphite is expected to be channeled to POSCO Future M Co., South Korea’s electric vehicle battery materials maker. According to the company, these recent agreements lay the groundwork for a stable supply chain of natural graphite.
The move comes at a significant time, as the US Inflation Reduction Act (IRA) will require non-Chinese graphite supplies for anode materials exported to North America starting in 2025. POSCO International suggests that its recent MOUs set the stage for complying with these new regulations.
Write to Hyung-Kyu Kim at [email protected]
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Publish date : 2023-09-04 07:00:00
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