Aims to strengthen POSCO Group’s secondary battery business and enhance the supply chain for mineral security in Korea

POSCO INTERNATIONAL has begun developing the world’s second-largest graphite mine by reserves. By building a supply chain for graphite—an essential EV battery material—it aims to boost the competitiveness of POSCO Group’s secondary battery business while reinforcing the supply chain for mineral security in Korea.

▲ Officials and company representatives at the groundbreaking ceremony of the Mahenge Graphite Mine in Tanzania. (From left) Kim Dae Young, CRO (Chief Regional Officer) of Africa and Middle East Region at POSCO INTERNATIONAL; Ahn Eun Ju, Ambassador of the Republic of Korea to Tanzania; John De Vries, CEO of Black Rock Mining; Adam Kighoma Malima, Regional Commissioner of Morogoro, Tanzania; Anthony Mavunde, Minister of Minerals, Tanzania; Richard Crookes, Non-Executive Director of Black Rock Mining; Nehemiah Kyando Mechechu, Treasury Registrar, Ministry of Finance of Tanzania; Boma Raballa, Chief Commercial Officer (CCO) of CRDB Bank, Tanzania; Christopher Ellinger, Deputy High Commissioner of Australia to Kenya.

On the 9th (local time), POSCO INTERNATIONAL held a groundbreaking ceremony at the Mahenge mine in Ulanga, Morogoro, Tanzania. The event was attended by 100 officials, including Kim Dae Young, CRO (Chief Regional Officer) of Africa and Middle East Region at POSCO INTERNATIONAL; Anthony Mavunde, Tanzania’s Minister of Minerals; John De Vries, Black Rock Mining CEO; Ahn Eun Ju, Ambassador of the Republic of Korea to Tanzania.

▲ Groundbreaking ceremony of the Mahenge Graphite Mine in Tanzania. (From left) Kim Dae Young, CRO (Chief Regional Officer) of Africa and Middle East Region at POSCO INTERNATIONAL; Ahn Eun Ju, Ambassador of the Republic of Korea to Tanzania; John De Vries, CEO of Black Rock Mining; Richard Crookes, Non-Executive Director of Black Rock Mining; Adam Kighoma Malima, Regional Commissioner of Morogoro, Tanzania; Anthony Mavunde, Minister of Minerals, Tanzania; Nehemiah Kyando Mechechu, Treasury Registrar, Ministry of Finance of Tanzania; Boma Raballa, Chief Commercial Officer (CCO) of CRDB Bank, Tanzania; Christopher Ellinger, Deputy High Commissioner of Australia to Kenya.

The Mahenge mine holds approximately 6 million tons of natural graphite reserves. Its development is led by Australian resource company Black Rock Mining, with POSCO Group participating as a strategic partner. This project is part of the Mineral Security Partnership (MSP), a global initiative led by major countries such as the US, South Korea, Japan, and the EU to ensure mineral security. The MSP, a multilateral framework aimed at stabilizing the supply of critical minerals, is expected to play a key role in securing the critical mineral supply chain.

Graphite is a critical material for EV battery anode production. China dominates over 70% of global supply, making supply chain stability a global issue. Recently, major countries are intensifying efforts to reduce dependence on China.

The US Department of Commerce made a preliminary decision to impose a 93.5% anti-dumping tariff on Chinese graphite. When added to existing tariffs, the total rate reaches up to 160%, practically limiting Chinese graphite’s access to the U.S. market. These strong US trade measures increase the need for supply chain diversification among major governments and global automakers and battery industries. POSCO INTERNATIONAL’s project is gaining attention as a key initiative meeting these strategic demands.

In 2021, POSCO Group joined the Mahenge graphite mine development as POSCO Holdings invested $7.5 million in Black Rock Mining. POSCO INTERNATIONAL signed a 30,000-ton annual graphite supply contract in 2023, followed by a second-phase contract of the same scale in 2024, strengthening cooperation.

Black Rock Mining plans to conduct a capital increase this year for the final investment decision (FID). POSCO Holdings currently holds a 7.45% stake in Black Rock Mining, and upon completion of POSCO INTERNATIONAL’s $40 million investment agreement in September 2024, POSCO Group’s stake will increase to 19.9%.

Starting commercial production in 2028, POSCO INTERNATIONAL will receive 60,000 tons of natural graphite annually for about 25 years. The secured graphite will be used in the production of anode materials by POSCO Future M, significantly increasing the group’s raw material self-sufficiency for secondary battery materials.

This will enhance POSCO Group’s secondary battery material competitiveness, improve raw material self-sufficiency for domestic battery industry, and play a key role in national mineral security and global supply chain stabilization.

Through this African graphite mine development, POSCO INTERNATIONAL expands its resource development portfolio and enhances global resource development capabilities. The company plans to strengthen cooperation with major mineral suppliers to enhance the stability of the secondary battery material supply chain.

A POSCO INTERNATIONAL official said, “The Mahenge mine development is a significant opportunity to expand our resource development capabilities in Africa,” adding, “We expect this project to enhance POSCO Group’s anode material competitiveness, stabilize the global battery material supply chain, and contribute to domestic mineral security.”

Black Rock Mining CEO John De Vries said, “This groundbreaking ceremony marks the Mahenge project’s entry into full-scale execution,” adding, “Close cooperation with POSCO INTERNATIONAL made this achievement possible. We will work together for successful commercial production.”

Tanzanian natural graphite to be used as anode material by POSCO Future M

H.E. Togolani Edriss Mavura, Tanzanian Ambassador to South Korea, visited POSCO Group’s facilities in Sejong and Gwangyang from May 13 for two days.

Tanzania is rich in natural graphite, a critical raw material for anodes in Rechargeable batteries. POSCO Group has invested in the Mahenge mine in Tanzania, the world’s second-largest graphite deposit by volume, securing a contract to supply 750,000 tons of natural graphite over 25 years. To ensure a stable supply of natural graphite and foster a strong relationship with Tanzania, POSCO Holdings invited Ambassador Mavura and his delegation.

▲H.E. Togolani Edriss Mavura, Tanzanian Ambassador to South Korea (second from left), taking a commemorative photo with Wook Choi, Head of Gwangyang Anode Material Division, at the POSCO Future M Gwangyang Anode Material Plant.

On May 13, Ambassador Mavura first visited the POSCO Future M Sejong Anode Material Plant, where Tanzanian natural graphite will be used. He toured the POSCO Future M Gwangyang Cathode Material Plant, POSCO HY Clean Metal, and POSCO Gwangyang works. After inspecting the facilities, Ambassador Mavura expressed his admiration for the scale of POSCO Group’s Rechargeable battery material business. He noted that Tanzania, which also has nickel and lithium mines, looks forward to expanding its collaboration with POSCO Group in the Rechargeable battery material sector. He added that Tanzania is rich in agricultural resources such as cashew nuts, coffee, and sugarcane, which opens up further opportunities for cooperation with POSCO Group’s diverse business units involved in food resources.

▲H.E. Togolani Edriss Mavura, Tanzanian Ambassador to South Korea, being briefed on business cooperation plans at the POSCO Future M Gwangyang Cathode Material Plant.

Visiting the Gwangyang works, Ambassador Mavura remarked, “I was amazed by Gwangyang works, the world’s largest steel plant. The automated processes that operate cleanly and safely were particularly impressive.”

Meanwhile, the South Korean government is pursuing an Economic Partnership Agreement (EPA) with Tanzania, the first agreement with an African nation. Ambassador Mavura, who was selected as one of the “100 Tanzanian Changemakers 2023” last year, is expected to play a crucial role in bridging cooperation between the governments of South Korea and Tanzania.

* EPA: A trade agreement with market-opening elements similar to a Free Trade Agreement (FTA) aimed at mutual prosperity and cooperation with partner countries.