Maputo, May 22, 2026 (Lusa) - Australian mining company Syrah Resources said on Friday it planned to significantly increase graphite production at Mozambique's Balama mine, in Cabo Delgado Province, to more than 200,000 tonnes annually due to rising demand for electric vehicle batteries.
The company said on Friday during a presentation to shareholders that Balama was one of the sector's most relevant assets.
The company considered the mine the largest high-quality graphite resource outside China, with a lifespan of over 50 years and a current installed capacity of 350,000 tonnes per year, despite current production of 163,000 tonnes.
Syrah stated in the document that it had recorded significant export growth from Balama to markets outside China.
Sales increased by more than 70% between 2023 and 2025, reflecting the diversification of global graphite demand.
The mining company added that it intended to increase the mine's annual production to between 200,000 and 240,000 tonnes in the medium term.
This strategy aims to keep pace with battery industry growth and reduce unit production costs.
The company also views the Balama mine as vital within its broader strategy to guarantee raw material supplies for the battery value chain, including anode material production for electric vehicles.
Syrah said Balama would continue to be its operational base and the main source of raw material for its industrial projects, despite its growing investment in the United States through the development of the Vidalia plant.
The company added that the operation benefited from the "strong support" of Mozambique's government and local and provincial authorities.
It noted the mine's impact on the country, pointing to a cumulative contribution of $598 million (€515 million) to Mozambique's economy, alongside additional investments of $4.4 million (€3.8 million) in community development projects since 2018.
The company noted in Friday's presentation that the global battery market continued to expand rapidly after growing 32% in 2025, which strengthens long-term graphite demand prospects.
Syrah Resources had announced in March that Balama would supply up to 68,000 tonnes of graphite to the Japanese electric vehicle market over the next seven years, after signing a multi-year graphite supply contract with NextSource.
The contract with NextSource provided for the delivery of 34,000 to 68,000 tonnes of graphite over the next seven years, starting in June, according to information sent to the markets.
The graphite would go to a battery anode facility in Abu Dhabi, United Arab Emirates, to subsequently supply a "downstream Japanese customer."
The company added that NextSource was a battery materials company based in Toronto, Canada, which owned the Molo graphite mine in Madagascar and was "prioritising the development of a large-scale anode materials facility in the Middle East."
The Balama mine produced 26,000 tonnes of graphite in the third quarter of 2025, recovering after social unrest in the country caused a six-month halt.
The mine supplied the North American and Indonesian electric vehicle battery markets.
The mine also sold and shipped 24,000 tonnes of graphite to customers, according to Q3 performance data.
Syrah announced on 24 July 2025 that the Balama mine had resumed exporting natural graphite for electric car batteries after social unrest caused a six-month halt, lifting the "force majeure" clause.
PVJ/LYT // AYLS
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