The U.S. agency International Development Finance Corporation (DFC) could come to hold about 20% of graphite producer Syrah Resources following the conversion of a $31 million loan into equity, in a transaction that also includes the provision of an additional $15 million for the project in Mozambique, Bloomberg reported.
According to information released by the company, the conversion will take place in two phases and will allow the DFC to become Syrah’s second-largest shareholder. Syrah operates one of the world’s largest graphite mines, located in Balama, in the province of Cabo Delgado. The process remains, however, subject to audits, technical due diligence, and government approvals.
The initiative is part of a broader U.S. strategy to secure access to minerals considered critical, reducing dependence on China, which dominates global graphite production. Data from the U.S. Geological Survey indicate that China accounted for 78% of global graphite production last year and leads the processing of the mineral into battery-grade material.
Graphite is an essential component in the anodes of rechargeable batteries used in electric vehicles and energy storage systems, and is considered strategic for the global energy transition.
In a separate statement, DFC CEO Ben Black said that “in an era of global competition, economic security is national security,” emphasizing that the operation will ensure U.S. access to one of the world’s largest graphite reserves, while promoting employment and boosting economic activity in Mozambique.
In recent months, the DFC has expanded its presence in the extractive sector, including a $600 million financing package for a consortium led by Orion Resource Partners to acquire stakes in copper and cobalt mines in the Democratic Republic of the Congo. The agency is also evaluating a potential $700 million financing for a tungsten project in Kazakhstan and has already approved a $565 million loan for the development of a rare earths mine in Brazil.
Syrah, however, faces difficulties stemming from a global market saturated with low-cost synthetic graphite produced in China, which has put pressure on prices and constrained the company’s profitability. Financial support from the DFC has been crucial to the continuity of operations.
In addition to the mine in Cabo Delgado, the company operates a facility in the U.S. state of Louisiana dedicated to processing graphite into material for electric battery anodes. This project has experienced delays, particularly in finalizing a supply agreement with the automaker Tesla.
