Tirupati Graphite: Aiming for 8% of the Global Market with Major Production Boost in Mozambique
Strategic Expansion in Mozambique
London-listed company, Tirupati Graphite, has unveiled plans to produce 50,000 metric tons of graphite in Mozambique in 2023. The move is an ambitious bid to capture 8% of the global market by 2030. This strategic expansion follows Tirupati’s acquisition of two graphite projects in Mozambique, Montepuez and Balama, from the Australian firm, Battery Minerals Ltd, in April.
Graphite, a critical component in battery production for energy storage and electric vehicles (EVs), is primarily mined in China, Mozambique, Madagascar, and Brazil. Tirupati also operates graphite mining and processing facilities in Madagascar, boasting an annual production capacity of 30,000 tons.
Boosting Production in Line with Market Growth
The global demand for EVs is forecasted to surge, with sales expected to reach 14 million in 2023, a significant increase from the 10 million figure in 2022, as reported by the International Energy Agency. This anticipated growth is set to escalate the demand for battery minerals such as graphite and lithium.
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Shishir Poddar, Executive Chairman of Tirupati, announced that the company aims to raise its production to an impressive 400,000 tons annually from both Mozambique and Madagascar within seven years. The two Mozambican projects currently hold permits to produce 158,000 tons annually. As the global market expands, Tirupati intends to increase production proportionately.
Positioned to Benefit from Western Government Strategies
Poddar also emphasized that the global demand for graphite is predicted to triple, reaching 5 million tons by 2030. With this in view, Tirupati is strategically positioning itself to gain from the efforts by Western governments to reduce dependence on China, presently the largest supplier of global battery minerals.
The company sells its graphite to markets across the United States, Europe, India, and Japan. This broad market distribution, coupled with their ambitious production goals, positions Tirupati to become a major player in the global graphite production and supply sector.
With its ambitious plans for expansion in Mozambique and Madagascar, Tirupati Graphite is poised to make a significant impact on the global graphite market. The company’s strategic positioning and response to increasing global demand for graphite, driven by the growth in EV sales, highlight its potential to become a major player in the sector. As Western governments seek to reduce dependence on China for critical battery minerals, companies like Tirupati that can scale production and supply are likely to reap significant benefits.
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