POSCO International procures battery materials supply in Africa

A MoU signing ceremony in Madagascar between POSCO International and NextSource Materials on a joint investment in the Molo graphite mine. [Courtesy of POSCO International]

POSCO International Corp., the trading arm of South Korean steelmaker POSCO, established a supply chain for 90,000 tons of graphite in Africa, expanding its existing supply capacity by 200 percent and further solidifying its secondary battery business.

POSCO International said Monday that it signed two memoranda of understanding (MoU) related to graphite supply in Africa.

On August 28, POSCO International signed a MoU with mining company NextSource Materials Inc. in Madagascar on a joint investment in the Molo graphite mine.

Under the agreement, POSCO International secured 30,000 tons of crystalline graphite annually over the next 10 years. Crystalline graphite is a natural graphite that has a property that does not conduct electricity and can be used as a raw material for cathode materials in secondary batteries.

The graphite will be supplied to POSCO Future M Co., POSCO Group’s secondary battery materials subsidiary.

On September 1, POSCO International also signed a MoU with Australia’s Black Rock Mining Ltd. in Tanzania, expanding its natural graphite purchase rights to up to 60,000 tons annually.

With the two agreements, POSCO International tripled its graphite supply capacity to 90,000 tons annually.