POSCO Group, South Korea’s leading steel and battery materials conglomerate, is making a strategic move to reduce its reliance on Chinese graphite by investing in a significant natural graphite reserve in Tanzania. The group’s trading arm, POSCO International Corp., has agreed to acquire a 19.9% stake in Black Rock Mining Ltd., an Australian company developing the Mahenge Graphite Project, for $40 million.
This Tanzanian project, estimated to hold around 6 million tons of natural graphite, is the world’s second-largest reserve. POSCO International’s investment secures an additional 30,000 tons of graphite annually, starting in 2026, when the mine begins operations. The deal also includes rights to sell low-purity graphite worldwide, while high-purity graphite will be utilized by POSCO Future M Co., the sole producer of anodes in South Korea.
This investment is part of POSCO Group’s broader strategy to eliminate its dependence on Chinese graphite, crucial for electric vehicle (EV) battery anodes, by 2027. With the U.S. planning to end tax incentives for EVs using Chinese-sourced graphite, this move ensures a stable supply chain for South Korea’s leading EV battery manufacturers, including LG Energy Solution, SK On, and Samsung SDI.
In addition to securing graphite from Tanzania, POSCO Group is exploring other sources in Africa, such as Mozambique and Madagascar, and ramping up artificial graphite production in South Korea to meet growing demand.
