Syrah Resources, the operator of the Balama Graphite Project in Mozambique and an Active Anode Material (AAM) plant on the American state of Louisiana, is a leading graphite producer globally. Balama is known for its high-quality flake graphite, with a large proportion of coarse flake suitable for battery anode production. The whole graphite project has an impressive resource estimate of over 100 million tonnes at 16% TGC (Total Graphitic Content), assuring long-term supply. As for its AAM plant (named Vidalia after the town in which it is located), it has a 11.25ktpa capacity, began production last year and has several key customers including Tesla.

This company is the only operating vertically integrated natural graphite AAM supplier outside of China. Syrah Resources (ASX:SYR) hasn't had the smoothest share price growth given its less than perfect operational history at Balama. However, we think finally looks to be heading in the right direction. It has a deal with Tesla to supply it with anode material, albeit subject to final qualification which is expected no later than the end of May 2024.

Evolution Energy Minerals is a significant player amongst aspiring ASX graphite developers, owing to its flagship Chilalo Graphite Project in Tanzania. Chilalo has an Indicated and Inferred Resource of 67mt at 5.4% Total Graphitic Carbon (TGC). It has a post-tax NPV of US$331m and post-tax IRR of 36%.
This project is designed to produce battery-grade graphite concentrates, targeting the rapidly expanding lithium-ion battery industry. Furthermore, its proximity to infrastructure, strategic energy resources including ports and power, gives Evolution a strategic advantage in supplying the lithium-ion battery market. It has been a tough ride to this point. This company and previous owners of Chilalo have been drilling at Chilalo since 2014.

And it has struggled with investor sentiment due to sovereign risk - sudden changes to the Mining Act in 2017 (including forced renegotiation of existing agreements, a mandatory 16% government shareholding, and restriction of repatriation of funds derived from mining) meant the company couldn't secure funding. Since then President John Magufuli died in 2021, things have looked up for EV1.

The new President Samia Suluhu Hassan has appeared to be more mining friendly and the Company now has a Formal Framework with the state.

Black Rock Mining is an ASX-listed company working on the Mahenge Graphite Project in Tanzania. This project boasts the fourth largest JORC-compliant graphite resource in the world with a mineral resource estimate of 213 million tonnes. It has a 44.8% IRR, a US$1.1.16bn post-tax NPV, a 63.1% AISC margin and a payback period of 3.8 years.

The company aims to produce large flake graphite, chip material is in high demand for use in expandable, graphite sheets and lithium-ion batteries. Black Rock has received multiple off-take agreements and positive feedback from potential customers on its pilot plant graphite concentrates. Most notably, it had a binding offtake deal with South Korean steel manufacturer POSCO. This makes it one of the most promising of graphite concentrate stocks on the ASX. Its share price has lagged for a couple of reasons, including the scars remaining from sovereign risk issues in Tanzania and the requirement for funding. It will need a total of US$510m and you'd be forgiven for thinking it should have secured it by now.

But BKT is gradually securing finance, with an initial US$59.6m from the Development Bank of Southern Africa approved in October 2023. The company plans commence production in the first half of CY26.