(Ecofin Agency) - The European Union (EU) presently gets most of its African graphite from the Molo mine in Madagascar. However, the Old Continent buys up to 97% of its natural graphite from China. Meanwhile, demand in the European market is expected to surpass 500,000 tonnes per year by 2030. This is good news for Africa which could supply this market.

Blencowe Resources has joined SAFELOOP, an EU-funded consortium focused on securing critical minerals used to make batteries. The British firm announced its recent adhesion on November 28, stressing that it allows Europe to access future graphite production from the Orom-Cross, a Ugandan project that Blencowe Resources manages.

Battery-grade graphite is critical for the EU. According to Fastmarkets, the European EV industry could need over 515,000 tonnes of graphite per annum, by 2030. The expected surge, paired with Europe’s ambition to keep at 65% its reliance on a single country, China currently, for critical minerals, leaves a door open to African producers.

Various supply deals have already been sealed between some European firm and mining firms. For instance, NextSource announced last October that it shipped its first graphite from Madagascar's Molo mine to Germany. 

Joining SAFELOOP allows Blencowe to sell up to 100,000 tonnes of graphite annually in Europe, thanks to long-term contracts related to the Orom-Cross project.

“We are delighted to join the high-profile SAFELOOP Project, positioning Blencowe at the heart of Europe’s transition to renewable energy.  Being chosen as the exclusive natural flake graphite concentrate supplier for SAFELOOP provides a potentially huge offtake opportunity ahead that can provide a valuable annuity income stream for our Company and long-term value for shareholders,” said  Executive Chairman of Blencowe Cameron Pearce. 

Despite these agreements, Europe is still relatively absent from the African critical mineral scene. A recent European Council report indicates that, unlike Asian companies such as those from China and South Korea, European firms are not engaged in joint ventures for graphite, copper, or nickel mines. The report urges Brussels and its partners to attract more European investors into Africa through incentives and price guarantees.

Emiliano Tossou