Posco Invests $40 Million in Black Rock's Tanzanian Graphite Project

South Korea's Posco International has inked a $40 million investment agreement with Australia’s Black Rock Mining, aiming to double its graphite supply from Tanzania's Mahenge project to 60,000 tonnes per year.

As part of the deal, Posco now holds a 19.9% stake in Black Rock Mining. The investment ensures Posco early access to graphite, a crucial material for its integrated battery supply chain. The Mahenge project is set to begin construction this year, with full-scale production slated for 2026.

Last year, Posco funded the first phase of the mine’s development, securing 30,000 tonnes per year for 25 years. The new Phase 2 contract will supply an additional 30,000 tonnes annually over the same period, bringing the total to 60,000 tonnes per year.

The company plans to use non-Chinese graphite for cathode materials, aligning with the U.S. Inflation Reduction Act and the EU’s Critical Raw Materials Act, which mandate compliant raw material sourcing for electric vehicle (EV) batteries.

As China continues to curb graphite exports, Posco is leveraging reduced EV battery demand to invest in raw material assets with long-term growth potential, such as lithium and graphite.

Additionally, Posco expects to expand its graphite operations globally by securing a sales agreement with Black Rock for industrial graphite used in steel, cement, and automotive components. This could also bolster South Korea’s mineral resource security.