The Key Minerals of the African Continent: Madagascar Emerges as a Strategic Graphite Supplier for Germany and the EU's Battery Industry
¬ Amid efforts in Berlin to secure critical mineral supplies, Germany’s Federal Institute for Geosciences and Natural Resources has assessed Madagascar’s graphite sector
¬ In 2024, Madagascar surpassed Mozambique to become Africa’s largest graphite producer
¬ The EU has designated graphite as a strategic raw material due to its crucial role in electric vehicle batteries and energy storage systems
Canadian mining company NextSource Materials announced on Thursday, May 14, that it hosted a technical delegation from Germany’s Federal Institute for Geosciences and Natural Resources (BGR) at its Molo graphite mine in Madagascar. This visit comes amid accelerated efforts by the EU and its member states to secure industrial supplies of critical minerals.
The delegation visited last week as part of an independent study conducted by the German institution into Madagascar’s graphite production. The assessment also included several other graphite mining projects across the island nation. The agency aims to evaluate whether these projects could potentially serve as suppliers of natural graphite for Germany, with final findings to be submitted to Germany’s Federal Ministry for Economic Cooperation and Development.
NextSource Materials stated in a statement: “BGR particularly focused on the evaluation of the Molo site, while also operating traditional graphite mining activities in other parts of Madagascar, aiming to establish it as a benchmark asset and potential supplier of natural graphite and anode materials for Germany. This initiative reflects the German federal government’s strategic emphasis on graphite — a raw material essential to German industry, Europe’s battery supply chain, and energy security."
Industrial and Strategic Interests
Amid intensifying global competition for critical minerals, this initiative continues to advance. Graphite is widely used by manufacturers in electric vehicle batteries and energy storage systems, making it a strategic raw material for the EU. Germany faces a dual challenge: its automotive industry is heavily reliant on imports, while the Berlin government seeks reliable supply sources and greater diversification beyond China’s current dominance in the value chain.
This trend has prompted Germany to establish a dedicated fund in 2025 aimed at ensuring sufficient access to critical raw materials for both Germany and the EU. In this context, Germany’s growing interest in Madagascar’s graphite industry holds significant strategic importance.
Madagascar, a historically prominent graphite supplier in Africa, became the continent’s largest graphite producer in 2024, surpassing Mozambique. According to data from the U.S. Geological Survey, Madagascar produced 85,000 tons of graphite in 2024 and is projected to produce 80,000 tons in 2025, compared to Mozambique’s 39,000 tons and 60,000 tons respectively during the same period.
Besides NextSource Materials’ operations at the Molo mine, companies such as Tirupati Graphite and Etablissements Gallois have also contributed to graphite production in India.
However, despite Madagascar’s rising market position and Germany’s evident interest, no concrete agreements have yet been reached regarding the country’s graphite industry. Market participants continue to monitor developments closely, especially since certain projects—including the Molo mine—still face operational challenges.
The Molo project has a nominal annual capacity of 17,000 tons. However, due to technical limitations, actual output remains below this level, currently averaging around 11,000 tons per year.
Meanwhile, graphite production continues to grow across other regions of the African continent.
Tanzania is one of the most active countries in this field, driven by the development of multiple new mines—including the Epanko mine owned by EcoGraf and the Mahenge mine developed by Black Rock Mining.
Source: ecofinagency
Original article: toutiao.com/article/1865351037205849/
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