Australia’s Syrah Resources has signed a seven-year supply agreement with Canada’s NextSource Materials for graphite shipments from Mozambique’s Balama mine, strengthening Africa’s position in the global battery minerals market.
The Balama operation in northern Mozambique is the largest graphite mine in Africa, with a nominal production capacity of 350,000 tonnes per year.
Under the agreement, NextSource will purchase between 34,000 and 68,000 tonnes of graphite over seven years beginning June 1.
The graphite will supply a large-scale anode production plant that the Canadian company plans to develop in the United Arab Emirates, Business Insider Africa reported.
Syrah said sale prices will be set quarterly by mutual agreement and adjusted based on product quality and freight costs.
The deal is conditional on the UAE facility reaching commercial production and securing approval from its future customers to use graphite sourced from Balama.
NextSource is expected to make a final investment decision soon as the project moves from pre-development toward construction.
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The agreement comes at an important time for Balama, which has been operating below capacity due to weak global graphite prices and lower demand.
Syrah has been running the mine in “campaign mode,” adjusting production in line with market conditions rather than maintaining full output.
A stable, long-term offtake agreement could help stabilize revenue and support more consistent operations.
The deal also underscores Africa’s expanding role in the global energy transition supply chain.
Graphite is a critical material used in lithium-ion battery anodes, making it essential for electric vehicles and energy storage systems.
As Western and Asian manufacturers look to diversify supply away from highly concentrated markets, African producers are taking on more strategic importance.
For Mozambique, continued exports from Balama could increase mining royalties, export earnings, and foreign exchange inflows.
Although commodity markets remain volatile, long-term supply agreements linked to downstream battery projects provide greater predictability and could help integrate Mozambique more deeply into higher-value segments of the global minerals industry.
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Image Credit: Freepik
