POSCO International has entered into a $40 million investment agreement with Australian mining company Black Rock Mining (BRM) to secure a stable supply of graphite for electric vehicle (EV) production. The agreement was signed on September 3 at the Korea-Australia Economic Cooperation Committee meeting in Perth, Australia.
The investment will support the development of the Mahenge mine in Tanzania, which has 6 million tons of graphite reserves, making it the second largest graphite mine in the world. Through this agreement, POSCO International aims to secure enough graphite to supply 1.26 million EVs annually, strengthening its critical material supply chain.
As part of the agreement, POSCO Group will acquire a 19.9% interest in BRM at the group level. The company plans to source 30,000 metric tons of natural graphite per year starting in 2026, with projections to double that to 60,000 metric tons per year by 2028.
This latest investment builds on a previous $7.5 million investment by POSCO Holdings in BRM and further solidifies the strategic partnership between the two companies.
The agreement is expected to play a critical role in diversifying South Korea’s graphite supply chain, which currently relies on China for 97% of its imports. The Ministry of Trade, Industry and Energy sees this contract as strategically important to mitigate potential future supply chain disruptions and to align with international policies such as the U.S. Inflation Reduction Act and the European Union’s Critical Raw Materials Act.
The signing ceremony was attended by key figures including Jeong In-kyo, Director of the Trade Negotiation Headquarters at the Ministry of Trade, Industry and Energy, Madeleine King, Australian Federal Minister for Resources, and Jang In-hwa, Chairman of POSCO Group.
Source: Business Korea
