Mozambique has opened its first domestic graphite processing plant, according to local news outlet Club of Mozambique. The facility, built by DH Mining, a subsidiary of China’s Jinan Yuxiao Group, has a processing capacity of 200,000 metric tons per year. Mozambican President Daniel Chapo inaugurated the plant in late January, describing it as one of the most advanced of its kind.
DH Mining began developing the graphite mine in Nipepe in 2014. The company has invested around US$200 million in the region, supporting both mining and processing infrastructure. The project currently employs about 1,000 permanent workers and over 200 temporary workers, with workforce numbers expected to rise as the project enters its next phase.
According to company director Sang Shong, the investment reflects long-term confidence in Mozambique’s mineral sector and its place in the global battery supply chain. Mozambique is already one of the world’s largest graphite producers, based on estimates from the US Geological Survey.
The new plant may increase competition for European producers, especially if Mozambique begins exporting processed graphite directly. However, for European buyers, the development could help diversify sourcing options. Mozambique’s closer integration into graphite supply chains may also support long-term offtake agreements, particularly amid recent U.S. policy shifts that have reduced demand and investment predictability.
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