Global graphite output, a key component in the electric vehicle (EV) manufacturing market, is expected to rebound by 7.6% to an estimated 1 025 kilotons (kt) after output dipped by 15.4% in 2020 because of coronavirus pressures on the EV market.
Previously, as EV demand pushed graphite mining to strong levels in 2018 and ’19, Chinese production surged, making it the world’s largest producer, followed by Mozambique.
However, Covid-19’s impact on Mozambique’s graphite capacity decreased output in the East-African country from 100 to 20kt.
According to Vinneth Bajaj, senior mining analyst at London consultancy firm Global Data, the reduction is due to the Balama graphite project operated by Australia’s Syrah Resources being suspended due to restrictions and lower EV demand, with no production at all since April 2020.
He added that output at Balama in the Namuno district of Cabo Delgado province was well positioned to begin operations once market conditions improved.
Mozambique is also expected to extend its graphite production further north of Namuno at Montepuez once increased demand begins to drive output.
EV demand is also expected to kick-start graphite production further afield at Lindi Jumbo in Tanzania and Molo in Madagascar.
Despite last year’s impact on graphite production, Bajaj said global graphite output was expected to curve upwards and reach 1 206.6kt by 2024 as the EV market gathered momentum.
