Tanzania eyes 50,000 mt/year graphite output under new $100M China deal: minister

Tanzania has signed a $100-million agreement with Chinese state-owned Henan Yudi Mining Company to develop a graphite project in Morogoro district, Tanzania Minerals Minister Anthony Mavunde said Aug. 18, marking a significant step in the East African country's push to integrate into the global electric vehicle supply chain as demand for battery materials intensifies.

The project is estimated to have 104.28 million metric tons of reserves, and the government holds a 17% equity stake, with the remaining 83% held by Henan Yudi, Mavunde told Platts, part of S&P Global Energy. The project is expected to have a targeted capacity of 50,000 mt/year of graphite, he added.

The government's direct participation signals a shift from relying solely on taxes, fees and royalties to capturing value through equity ownership in strategic mineral developments, according to the minister.

The deal comes as Tanzania positions itself as a key supplier of graphite, a critical raw material used in lithium-ion batteries for EVs and energy storage systems.

The country's graphite reserves have attracted growing international investor interest following mining sector reforms and policy changes that have created a more favorable investment environment, Mavunde said.

Tanzania is ranked among the world's top graphite producers and currently has over 30 licensed medium and large-scale graphite projects. The country also holds deposits of other critical minerals, including nickel, rare earth elements, gold and lithium, positioning it to benefit from the global energy transition.

The government has prioritized local mineral processing before exportation as part of efforts to capture more value from its natural resources and transform the economy. Tanzania's mineral exports reached $5.401 billion in 2025, according to Muvunde.