Syrah Resources has signed a seven-year graphite supply agreement with NextSource Materials, sourcing material from the Balama graphite mine, Africa’s largest graphite operation, according to Business Insider Africa.
Under the deal, NextSource will purchase between 34,000 and 68,000 tonnes of natural graphite fines annually over the next seven years to supply its planned battery anode facility in Abu Dhabi, United Arab Emirates. Pricing and volumes will be reviewed quarterly, with adjustments for product quality and freight costs. The agreement is contingent on the UAE facility reaching commercial production and approval of Syrah’s material by NextSource and its downstream customers, as reported by Investing.com.
The Balama mine, one of the world’s largest graphite operations, provides a stable source of feedstock for battery minerals. The long-term supply pact is expected to secure revenue for the mine while supporting NextSource’s anode production for lithium-ion batteries, which are critical to electric vehicles and energy storage systems.
Analysts note that agreements of this nature underscore Africa’s growing role in the global battery minerals market, as manufacturers seek reliable sources outside China to diversify supply chains and meet rising demand amid the energy transition.
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