Graphite : China looks to Africa to dominate the global market
Despite accounting for 80% of global graphite production, according to the International Energy Agency (IEA), China is aiming to seize control of African production, which could surpass its own by 2026, according to Benchmark Mineral Intelligence (BMI).
By Bilkyss Mentari
China’s push in Africa began in early December 2024. With the sale of its Ancuabe graphite project in Mozambique to the Chinese company Shandong Yulong Gold, Australian Triton Minerals confirms China’s intent to dominate the African graphite industry. This move represents a crucial step toward China’s eventual control over the global graphite market, a vital resource for steel production.
By the completion of the transaction in February 2025, Shandong Yulong will hold 70% of the project’s shares, with Triton retaining 30%. This deal will enable the Chinese company to control an asset that can deliver approximately 70,000 tonnes of graphite concentrate annually for 27 years. In Mozambique, Shandong Yulong will join another Chinese company, DH Mining Development, which is set to begin production at its Nipepe project by the end of 2024, with a production capacity of 200,000 tonnes of graphite annually for 25 years, according to Mozambique’s Centro de Integridade Pública.
Chinese companies are entering Africa’s graphite industry as China’s leadership is increasingly challenged by African nations
China’s presence in Mozambique, as well as in other African countries, reflects its growing interest in African graphite. This comes at a time when China’s leadership is increasingly contested, particularly by African nations. According to Benchmark Mineral Intelligence (BMI), by 2025, Mozambique, Tanzania, and Madagascar are projected to account for 47% of new graphite supply, up from a combined share of just 10% in global supply by the end of 2023. This forecast signals a strong growth in African graphite production, opening up competition for China’s ambitions.
According to Benchmark, with 40% of the global supply, Africa is expected to surpass China (35%) as the world’s leading producer of natural graphite by 2026
The outlook for China in Africa’s graphite sector continues to worsen. According to Benchmark, with 40% of global supply compared to China’s 35%, Africa is expected to overtake China as the world’s leading producer of natural graphite by 2026. In light of this, South Korea and the European Union have recently reached agreements with companies involved in African graphite projects, both aiming to reduce their reliance on China, which has leveraged its control over graphite as a tool in its trade war with the U.S. and its allies. Ultimately, Africa benefits from this competition among global powers. It provides the continent with the opportunity to negotiate more favorable mining agreements, especially regarding the establishment of local processing units for its production. To protect their resources, some countries, like Ghana and Namibia, have opted to ban the export of critical minerals, including graphite, in their raw form.
