Mozambican President Chapo Inaugurates $150M Chinese Graphite Plant in Nipepe
On 30 January 2026, Mozambican President Danile Chapo officially inaugurated the #graphite processing plant in Nipepe District, Niassa Province, in northern Mozambique. The plant is built and operated by DH Mining, a subsidiary of Jinan Yuxiao Group, and necessitated a foreign direct investment (FDI) of more than USD 150 million.
The plant has a processing capacity of 200 kilo tonnes per year (KTY) of graphite and employs nearly 900 people. In future phases, expansion will bring the headcount to about 2,000. In addition to the plant, the company also financed the construction of a bridge across the Lurio River, which can be used by the community.
President Chapo highlighted that the implementation of the graphite processing plant adheres to his Government’s policy to promote local value addition (LVA). Currently, graphite is one of the #CriticalMinerals in high demand as it is used to make batteries powering Electric Vehicles (#EV) and electronic devices.
Mozambique is the world’s third-largest producer of graphite, accounting for nearly 6% of global production and experiencing a robust, double-digit growth rate over the past few years. Most of the graphite from Mozambique is exported to China, which dominates the world market for batteries.
The main graphite mines in Mozambique are Balama (350 KTY) owned by Australia’s Syrah Resources (ASX: SYR), Nipepe (200kTY) owned by China’s DH Mining, Mongtepuez (100 kTY) and Balama Central (60 KTY) owned by Tirupati Graphite (LSE: TGR) , and Ancuabe (60kTY) owned by Australia’s Triton Minerals. Balama is ranked as Africa’s largest graphite mine.
The US Development Finance Corporation (DFC) backs Syrah Resources financially, while the Chinese Government supports Jinan Yuxiao Group. As for Tirupati Graphite, it receives support from the Indian Government through offtake agreements and land allocation to build the Tirupati Graphene and Mintech Research Center (TGMRC).
In 2023, Mozambique’s graphite output reached 98,000 tonnes, before falling to 75,000 tonnes in 2024. For 2025, production bounced back to 101,814 tonnes. With so many graphite ramping up production, Mozambique is projected to contribute nearly 13.5% of the global output in 2026.