Syrah Resources, the Australian company operating the Balama graphite mine in Cabo Delgado province, northern Mozambique, announced that it expects to significantly increase production to more than 200,000 tonnes per year, driven by growing international demand for graphite used in electric vehicle batteries.
In a presentation made to shareholders this Friday, 22 May, the mining company highlighted that the Balama mine is one of the sector’s most important assets, regarded as the largest high-quality graphite resource outside China, with a lifespan of more than 50 years and an installed production capacity of 350,000 tonnes annually, although current production stands at around 163,000 tonnes.
Quoted by Lusa, Syrah stated that it recorded significant growth in exports from Balama to markets outside China, with sales increasing by more than 70% between 2023 and 2025, reflecting the diversification of global graphite demand.
The company added that, in the medium term, it plans to raise annual mine production to between 200,000 and 240,000 tonnes, a strategy aimed at keeping pace with the growth of the battery industry while reducing unit production costs.
The importance of the Balama mine is also highlighted within the company’s broader strategy to secure raw material supply for the battery value chain, including the production of anode materials for electric vehicles.
Despite its growing focus on the United States through the development of the Vidalia plant, Syrah stressed that Balama will remain its operational base and the main source of raw materials for its industrial projects.
The company also underlined its strong support from the Government of Mozambique and local and provincial authorities, noting the mine’s impact on the country through a cumulative contribution of US$598 million to the Mozambican economy, as well as an additional US$4.4 million invested in community development projects since 2018.
In March, it was announced that the Balama mine would supply between 34,000 and 68,000 tonnes of natural graphite to the Japanese market over the next seven years under a new multi-year agreement signed by Syrah Resources.
According to a statement issued to the markets at the time, the agreement was signed with NextSource Materials and deliveries are expected to begin in June.
The graphite extracted from Balama will initially be sent to an anode production facility under development in Abu Dhabi, United Arab Emirates, which will later supply a Japanese downstream client involved in the electric vehicle battery manufacturing chain.
