Posco International of South Korea has committed to a $40 million investment in Australia-based Black Rock Mining, with the goal of doubling its graphite supply from the Mahenge project in Tanzania to 60,000 tonnes per year.
Through this investment, Posco secures a 19.9% stake in Black Rock Mining, positioning itself to tap into crucial graphite resources early. The Mahenge mine is slated to begin construction this year, with full-scale production anticipated by 2026.
Posco had previously backed Phase 1 of the project, securing 30,000 tonnes annually for 25 years. The new Phase 2 agreement will provide an additional 30,000 tonnes annually, bringing the total supply to 60,000 tonnes per year.
Posco plans to use this non-Chinese graphite in its battery materials, ensuring compliance with regulations like the U.S. Inflation Reduction Act and the EU’s Critical Raw Materials Act, which require ethical and sustainable sourcing of electric vehicle battery materials.
Amid China's restrictions on graphite exports, Posco is capitalizing on opportunities presented by reduced demand in EV batteries to secure vital raw materials like lithium and graphite.
Moreover, Posco is set to expand its graphite business through a global sales contract with Black Rock for industrial graphite, used in sectors like steel, cement, and automotive production. This move will further solidify South Korea’s critical mineral resource security.
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