POSCO International announced on the 29th that it has signed a long-term supply contract for natural graphite used in secondary battery cells with Faru Graphite in Tanzania.
The contract partner is a subsidiary of the Australian mining company Black Rock Mining. Under this agreement, POSCO International will invest $10 million to receive 750,000 tons of natural graphite over 25 years. Faru Graphite owns the Mahenge graphite mine in Tanzania, which the company stated is ranked second in the world in terms of reserves.
The mine life of the Mahenge mine is currently 25 years, and POSCO International plans to supply the graphite received during this period to POSCO Future M, which operates the secondary battery business within the POSCO Group. Graphite is a key material for the anode in secondary batteries, storing and releasing lithium ions from the cathode to allow electric current to flow.
The company described this contract as an example of synergy within the POSCO Group’s secondary battery business. Previously, POSCO Holdings acquired a 15% stake in Black Rock Mining in 2021, and POSCO International demonstrated its capabilities as a business developer and trader. POSCO International plans to expand its secondary battery raw material business beyond graphite to include copper foil raw materials and recycling of used batteries.
Since battery materials and raw materials are highly dependent on Chinese products, the company expects that expanding the secondary battery value chain at the group level will also contribute to stabilizing the supply chain. POSCO International stated, "With major countries around the world working to establish ‘de-China supply chains,’ we are making every effort to secure key minerals," and added, "We will continue to invest to stably procure raw materials for secondary battery materials."
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