Tanzania Mining Development Investment Contract Signed... Securing Annual Supply Chain of 1.26 Million Electric Vehicle Graphite

POSCO International Signs $40 Million Investment Agreement with Australian BRM

The Ministry of Trade, Industry and Energy announced on the 3rd that POSCO International signed an investment agreement worth 40 million USD with Australian company BRM, the owner of the Mahenge mine in Tanzania, Africa, at the Korea-Australia Economic Cooperation Committee held at Crown Towers in Perth, Australia. Accordingly, the POSCO Group will hold a 19.9% stake in BRM at the group level, in addition to the 7.5 million USD previously invested by POSCO Holdings.

An official from the Ministry of Trade, Industry and Energy stated, "The ministry announced a core mineral securing strategy last February to reduce dependence on specific countries for critical minerals and has been working closely with companies to secure graphite supply chains. This mining development investment has created a groundbreaking opportunity for the graphite supply chain and bilateral economic cooperation by securing an annual graphite supply equivalent to 1.26 million electric vehicles."

With this agreement, the development of the Mahenge mine, the world's second-largest graphite deposit with 6 million tons of graphite reserves, will be accelerated. The POSCO Group will secure up to 60,000 tons of natural graphite annually?30,000 tons per year starting in 2026 and an additional 30,000 tons per year from 2028?equivalent to the amount needed for 1.26 million electric vehicles. As of last year, South Korea's natural graphite imports (including flake graphite used in anodes) were about 50,000 tons, with 97% dependent on China. The ministry expects that this agreement will significantly diversify the graphite supply chain and alleviate concerns about supply chain risks.

Jung In-kyo, Director General of Trade Negotiations at the Ministry of Trade, Industry and Energy, said, "This investment agreement symbolizes the solid economic cooperation between Korea and Australia, stabilizing the supply chain of graphite, one of the critical minerals with the highest import dependence, and creating a new turning point to overcome various constraints in the supply chain. Going forward, the government will continue to reduce corporate risks and enhance outcomes through tax and financial support as well as proactive resource diplomacy."