Norge Mining, an Anglo-Norwegian natural resources company, has announced an agreement to acquire Skaland Graphite AS, the largest natural graphite producer in Europe. The acquisition will be executed through Norge Mining’s Norwegian subsidiary, Norge Mineraler Holding AS, and is expected to be finalized in the first quarter of 2025, pending customary closing conditions and regulatory approvals.
Skaland Graphite operates the Skaland mine located on the island of Senja in northern Norway, approximately 200 kilometers from Tromsø. Recognized as the world’s highest-grade operating flake graphite mine, Skaland is among the top four graphite producers outside of China. The mine currently produces about 10,500 tonnes of graphite annually, supplying primarily industrial customers.
Graphite has been designated by the European Union as a Strategic Raw Material due to its critical role in the green energy transition. It is a key component in lithium-ion batteries used in electric vehicles, energy storage systems, and other technologies essential for reducing carbon emissions. The global graphite market is projected to grow from $24 billion in 2022 to $38 billion by 2028, according to Statista.
Norge Mining’s acquisition aligns with its mission to secure supply chains for Strategic and Critical Raw Materials within Europe. The company plans to target battery-grade graphite production in addition to continuing to serve existing industrial clients. This strategy complements Norge Mining’s planned production of other battery materials, including phosphate, from its Eigersund Project in southwest Norway.
John Vergopoulos, Chief Executive Officer of Norge Mining, commented on the acquisition: “Skaland is a globally important graphite asset, and its acquisition is a major strategic step for Norge Mining in becoming an integrated supplier of critical materials to the Western world. Skaland has significant potential in a market growing in both size and strategic importance. Along with our Norwegian subsidiary, Norge Mineraler, we possess the expertise and capital to optimize operations at Skaland in cooperation with the local team, who we look forward to welcoming to the company.”
The acquisition takes place amid increasing concerns about the security of raw material supply chains, particularly following China’s recent export controls on graphite and other critical minerals. China currently produces 97% of the world’s graphite anodes, underscoring the importance of developing alternative sources. Norge Mining’s move positions the company to play a significant role in Europe’s efforts to establish a secure and sustainable supply of materials essential for the green economy.
Source: PR Newswire
