(Ecofin Agency) - Blencowe Resources is developing the Orom-Cross project, Uganda’s first graphite mine. Graphite is a key material for electric vehicle batteries, and Africa’s reserves are drawing interest from companies like Tesla.

On March 19, 2025, Blencowe announced a non-binding memorandum of understanding with Apollo Energy Systems. Apollo, a Florida-based company specializing in lead-acid battery energy storage systems, will be the mine’s first U.S. customer.

The agreement includes initial deliveries of 250 tonnes of purified fine flake graphite per year. The final price is yet to be negotiated over the next two years, but similar graphite products currently sell for around $8,000 per tonne. The graphite concentrate produced at Orom-Cross will be purified in Chicago before being sold to Apollo.

“Following a successful marketing tour of the USA, this MOU is the first of several that we anticipate bringing to market near term.  It builds on our initial agreement with Jilin, announced in 2024, to supply up to 15,000tpa large flake concentrate,” commented Executive Chairman Cameron Pearce.

Sales agreements are considered valuable assets for mining companies as they demonstrate the economic viability of their projects. These agreements help secure financing for mines by reassuring lenders of market demand.

The deal announced on Wednesday covers only 5% of Orom-Cross’s expected annual production during phase 1, which is 5,000 tonnes. Therefore, Blencowe needs to seal the deal–make it binding–and keep looking for buyers.

Several lenders have expressed interest in financing the Orom-Cross graphite project in Uganda, including the Africa Finance Corporation (AFC). Earlier this month, Blencowe Resources issued a press release informing that the AFC could support the project, with a loan and a direct equity stake.

The initial investment required for Orom-Cross is $62 million, as outlined in a pre-feasibility study published in 2022. In its first stage, the project should produce 5,000 tonnes of graphite concentrate annually. In phase two, the output is expected to reach 50,000 tonnes annually.

This article was initially published in French by Emiliano Tossou

Edited in English by Ola Schad Akinocho