The energy transition and EV growth have sharply increased demand for critical minerals, though this demand remains volatile, illustrated by recent lithium price swings. Offtake agreements that lock-in prices early could provide demand certainty, improve market visibility and support more stable investment.2.8 Demand certainty CASE STUDY 8 Offtake agreement between POSCO and Black Rock Mining68 POSCO International, South Korea’s largest trading company and a key player in the global battery materials supply chain, signed a binding agreement in September 2024 to invest $40 million in equity in Black Rock Mining, an Australian-listed developer of the Mahenge Graphite Project in Tanzania, coupled with $10 million prepayment to Faru Graphite, the Tanzanian joint venture operating entity. The agreement strengthens a long-standing strategic alliance between the two firms and secures POSCO’s long-term offtake of high-purity graphite fines from Mahenge’s Module 2 as well as marketing rights for large flake graphite outside China. Black Rock Mining, through its Tanzanian subsidiary Faru Graphite Corporation, holds one of the world’s largest graphite reserves and is positioned to become a major global supplier of natural graphite – a critical input for lithium-ion battery anodes used in EVs and energy storage systems. Impact of the offtake agreement It enables Black Rock to reach production by combining equity investment with long-term offtake, helping to reduce financing and commercial risk. It also strengthens POSCO’s battery materials supply chain by securing stable access to high-purity graphite through a strategic upstream partnership. Securing Minerals for the Energy Transition: Finance for Southern Africa 26

Securing Minerals for the Energy Transition 2025