Posco International signs two deals for battery graphite from Africa

Industry

Published: 04 Sep. 2023, 16:01

Posco International signs two deals for battery graphite from Africa

Executives of Posco International and NextSource take a photo during a signing ceremony to source graphite [POSCO INTERNATIONAL]

Posco International signed deals with two companies to source battery materials for electric vehicles in Africa, the Korean trade and energy company said Monday.

The two deals will help the Korean company to secure around 90,000 tons of graphite per year, the main ingredient in making anodes, one of four critical materials in batteries.

Posco International on Aug. 28 signed an agreement with Canadian NextSource Materials to jointly invest in Molo graphite mine in the province of Toliara, Madagascar. NextSource's Molo mine has graphite reserves of 22 million tons.

Executives of Posco International and Black Rock Mining take a photo during a signing ceremony to source graphite [POSCO INTERNATIONAL]

Posco is expected to source 30,000 tons of natural graphite or 15,000 tons of spherical graphite per year for 10 years.

The graphite will be supplied to Posco Future M, the battery materials making arm of Posco Holdings.

Posco International also signed a separate deal with Black Rock Mining, under which it will participate in the Australia-based miner's rights offering and explore a potential off-take deal to increase graphite supplies to 60,000 tons a year from Tanzania.

"With the two deals, Posco International will be able to secure 90,000 tons of graphite," Posco International said. "The deals are also meaningful that we will be able to secure materials when sourcing graphite outside of China is essential."

BY SARAH CHEA [chea.sarah@joongang.co.kr]