POSCO International has made a decisive move to bolster its electric vehicle (EV) supply chain by signing a $40 million investment deal with Australian mining company Black Rock Mining (BRM). The agreement, finalized on September 3 during the Korea-Australia Economic Cooperation Committee in Perth, Australia, is a strategic effort to secure a steady supply of graphite, a critical material in EV battery production.
This latest investment builds on a previous $7.5 million stake in BRM by POSCO Holdings, reflecting the group’s commitment to establishing a robust graphite supply chain. The investment will fund the development of the Mahenge mine in Tanzania, the world’s second-largest graphite reserve with an estimated 6 million tons. POSCO International aims to acquire enough graphite from Mahenge to support the production of 1.26 million electric vehicles annually.
POSCO Group will hold a 19.9% stake in BRM, ensuring significant influence over the mine’s operations. The group’s plan includes extracting 30,000 tons of natural graphite annually by 2026, with an additional 30,000 tons per year starting in 2028, potentially bringing the total to 60,000 tons annually.
This investment is part of a broader strategy to diversify South Korea’s graphite supply chain, which is currently heavily reliant on China. The Ministry of Trade, Industry and Energy emphasized that this diversification is crucial for mitigating future supply chain risks and aligning with global regulatory shifts such as the U.S. Inflation Reduction Act and the EU’s Critical Raw Materials Act. The move is expected to enhance South Korea’s competitiveness in the global EV market.
