- Syrah Resources has signed a seven-year graphite supply deal with NextSource Materials for shipments from Mozambique’s Balama mine.
- The agreement secures between 34,000 and 68,000 tonnes of graphite to feed an anode plant planned in the UAE by NextSource.
- Pricing will be agreed quarterly and adjusted for quality and freight, while the deal depends on the UAE plant’s successful launch and customer approvals.
- This contract helps stabilize Balama’s revenue and supports smoother operations amid fluctuating global graphite demand.
Australia’s Syrah Resources has signed a seven-year supply agreement with Canada’s NextSource Materials for graphite shipments from Mozambique’s Balama mine, reinforcing Africa’s growing footprint in the global battery minerals race.
The Balama operation, located 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 has committed to purchase between 34,000 and 68,000 tonnes of graphite over seven years starting June 1. The material will feed a large-scale anode production plant the Canadian firm plans to develop in the United Arab Emirates.
Sale prices will be set quarterly by mutual agreement and adjusted for product quality and freight costs, Syrah said.
The deal remains conditional on the UAE facility reaching commercial production and securing approval from its future customers to use Balama-sourced graphite.
NextSource expects to take a final investment decision soon as the project moves from pre-development toward construction.
Africa’s expanding role in battery minerals
The agreement comes at a crucial time for Balama, which has been operating below capacity due to weak global graphite prices and subdued demand.
Syrah has been running the mine in “campaign mode,” scaling production in line with market conditions rather than at full output.
A stable, long-term offtake arrangement could help smooth revenue flows and support more consistent operations.
Beyond corporate strategy, the deal highlights Africa’s expanding influence in the global energy transition supply chain. Graphite is a critical component in lithium-ion battery anodes, making it essential for electric vehicles and energy storage systems.
As Western and Asian manufacturers seek to diversify supply away from concentrated markets, African producers are increasingly stepping into strategic positions.
For Mozambique, sustained exports from Balama could translate into higher mining royalties, export earnings, and foreign exchange inflows.
While commodity cycles remain volatile, long-term supply contracts tied to downstream battery projects offer greater predictability and the potential to deepen Mozambique’s integration into higher-value segments of the global minerals industry.
Source: Club Of Mozambique / Business Insider
