The United States is intensifying its involvement in Africa’s critical minerals industry, planning to acquire an equity stake in one of the largest graphite mines globally, located in Mozambique. The move underscores rising geopolitical rivalry over control of battery supply chains.
The US International Development Finance Corporation announced plans to convert a $31 million loan to Syrah Resources which operates the Balama graphite mine into equity. This could give the agency an estimated 20% stake, positioning it as the second-largest shareholder.
In addition, the DFC intends to provide a further $15 million to Twigg Exploration and Mining Limitada, the local entity managing the Balama operation in Cabo Delgado.
According to Ecofin Agency, Syrah Resources has experienced a challenging period over the past two years, with its share price dropping significantly from about A$2.62 in November 2022 to near record lows.
This investment follows a critical minerals agreement between the US and Australia, signed in October 2025 by Donald Trump and Anthony Albanese, targeting projects worth $8.5 billion.
“In today’s era of global competition, economic security is national security,” said DFC CEO Ben Black. “This deal helps secure US access to one of the world’s largest graphite reserves.”
Washington increases focus on African mineral assets
The agreement represents one of the most direct efforts by the US to gain ownership stakes in Africa’s resource sector, as it works to challenge China’s stronghold on graphite supply chains.
China currently dominates global graphite production and processing, making diversification a strategic priority for the US government.
The Balama mine is particularly valuable due to its vast scale. It is estimated to contain around 110 million metric tons of graphite ore and could remain operational for up to 50 years, making it a key asset for future electric vehicle battery manufacturing.
African nations seek greater control over mineral resources
The growing global demand for resources coincides with a shift by African countries to capture more value from their natural wealth.
Across the continent, governments are updating mining regulations, raising royalties, and encouraging local processing to reduce dependence on exporting raw materials.
Mozambique has also attempted to strike a balance between attracting foreign investors and ensuring domestic benefits, despite security challenges in Cabo Delgado that have affected operations.
The Balama mine itself was shut down for eight months due to unrest linked to a contested election, highlighting both the risks and importance of such strategic assets.
As demand for critical minerals continues to rise, the US initiative reflects a broader trend of increased government-backed investment in Africa’s mining sector at a time when African nations are pushing to retain a larger share of the economic gains.