By Business Insider Reporter
Tanzania has officially entered the global graphite race, breaking ground on the Mahenge Graphite Project on October 9 – a move that positions the country at the forefront of the clean energy transition.
Led by Australian firm Black Rock Mining (BRM), in partnership with the Government of Tanzania and South Korea’s POSCO International, the Mahenge project is one of the world’s largest graphite developments.
Its launch marks more than just the beginning of mining operations – it’s a strategic signal that Tanzania is emerging as a key supplier of critical battery minerals.
Mahenge: A cornerstone for Tanzania’s graphite future
Located in Morogoro Region, Mahenge is expected to produce over 340,000 tonnes of high-purity graphite concentrate annually at full capacity and create over 400 direct jobs. With a capital investment exceeding US$200 million (about TSh 491 billion), the project is central to Tanzania’s ambition of becoming a global graphite hub.
The groundbreaking ceremony was officiated by Minister of Minerals Anthony Mavunde and attended by high-level representatives from the Tanzanian government, South Korea, and Australia.
Key stakeholders, including POSCO executives and BRM leadership, underscored the project’s significance not only to Tanzania’s economy but also to global supply chains for electric vehicles and renewable energy.
POSCO International, a major player in steel and battery materials, has secured a long-term offtake agreement with BRM, reinforcing investor confidence. The project is being developed through Faru Graphite Corporation, a joint venture between BRM and the Tanzanian government.
Richard Crookes, Chairman of Black Rock Mining, noted:
“Faru Graphite has secured a unique financing model supported by CRDB Bank, the Development Bank of Southern Africa, and South Africa’s Industrial Development Corporation. This shows that with transparency and strong partnerships, Tanzania can attract and deliver large-scale, globally relevant projects.”
A nationwide graphite surge
While Mahenge is the flagship, it’s far from alone. Tanzania is experiencing a wave of exploration and development across multiple high-grade graphite deposits:
- Epanko (Morogoro Region)
- Developed by Ecograf, this project is nearing construction and aims to supply battery-grade graphite to Europe.
- Chilalo (Lindi Region)
- Operated by Evolution Energy Minerals, Chilalo has secured US partnerships and targets the battery and expandable graphite markets.
- Nachu (Lindi Region)
- Owned by Magnis Energy Technologies, Nachu includes downstream processing infrastructure aligned with EV battery production.
- Merelani–Arusha Belt (Manyara & Arusha Regions)
- Home to artisanal mining and junior exploration activity, this belt is gaining attention for its untapped potential.
Together, these projects position Tanzania to become Africa’s leading graphite producer and a potential top-three supplier globally.
Why graphite – and why Tanzania?
Graphite is a critical, non-substitutable material used in lithium-ion batteries, comprising up to 95 percent of the anode in EV batteries. As global electric vehicle demand surges, so does the need for secure, diversified graphite supply chains – currently dominated by China.
Tanzania offers a compelling alternative.
Its large, high-quality reserves, coupled with supportive government policies and strategic partnerships, make it an emerging focal point for global graphite sourcing.
The growing momentum is attracting billions in foreign direct investment, driving job creation, infrastructure development, and downstream value addition – all aligned with Tanzania’s broader economic development goals.
Strategic minerals, strategic future The graphite boom represents a pivotal shift in Tanzania’s mining landscape, historically centered on gold. With Mahenge and other projects gaining traction, graphite is ushering in a new era of strategic mineral development – one that aligns with the global clean energy agenda and Tanzania’s ambition to become a critical minerals hub.
