The Balama operation, located in northern Mozambique, is the largest graphite mine in Africa, with a nominal production capacity of 350,000 tonnes per year.
Under the agreement, NextSource has committed to purchase between 34,000 and 68,000 tonnes of graphite over seven years starting June 1. The material will feed a large-scale anode production plant the Canadian firm plans to develop in the United Arab Emirates.
Sale prices will be set quarterly by mutual agreement and adjusted for product quality and freight costs, Syrah said.
The deal remains conditional on the UAE facility reaching commercial production and securing approval from its future customers to use Balama-sourced graphite.
Africa’s expanding role in battery minerals
The agreement comes at a crucial time for Balama, which has been operating below capacity due to weak global graphite prices and subdued demand.
Syrah has been running the mine in “campaign mode,” scaling production in line with market conditions rather than at full output.
Beyond corporate strategy, the deal highlights Africa’s expanding influence in the global energy transition supply chain. Graphite is a critical component in lithium-ion battery anodes, making it essential for electric vehicles and energy storage systems.
For Mozambique, sustained exports from Balama could translate into higher mining royalties, export earnings, and foreign exchange inflows.
While commodity cycles remain volatile, long-term supply contracts tied to downstream battery projects offer greater predictability and the potential to deepen Mozambique’s integration into higher-value segments of the global minerals industry.
