Posco International of South Korea has announced a $40 million investment in Australia’s Black Rock Mining, aiming to double graphite production from the Mahenge project in Tanzania to 60,000 tonnes annually. This investment grants Posco a 19.9% stake in Black Rock Mining, enabling the company to access critical graphite resources early in the development process.
The Mahenge mine is set to begin construction this year, with full production expected by 2026. Posco had previously supported Phase 1 of the project, securing a supply of 30,000 tonnes per year for 25 years. The new Phase 2 agreement will add another 30,000 tonnes annually, increasing the total supply to 60,000 tonnes.
Posco intends to utilize this non-Chinese graphite for its battery materials, aligning with regulations such as the U.S. Inflation Reduction Act and the EU’s Critical Raw Materials Act, which emphasize ethical and sustainable sourcing for electric vehicle batteries.
In light of China’s restrictions on graphite exports, Posco is seizing opportunities presented by declining demand in the electric vehicle sector to secure essential raw materials like lithium and graphite. Additionally, Posco plans to expand its graphite business through a global sales agreement with Black Rock for industrial graphite, which is vital for industries including steel, cement, and automotive production. This strategic move will enhance South Korea’s resource security in critical minerals.
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