Securing Minerals for the Energy Transition 2025

CASE STUDY 8 CONTINUED Challenge Financing hurdles: High capital expenditures are required for mine development, which often leads to reliance on external funding. Market access: Limited downstream partnerships and offtake agreements can make it harder to secure revenue. Demand concentration: Global graphite supply is dominated by a few players, with downstream capacity largely concentrated in China. Commercial risk: Without long-term offtake agreements, smaller firms face difficulty attracting institutional or development finance. Intellectual property: IP is a key barrier to entry in the critical minerals sector. Building out from an established participant can minimize competitive risks during the critical business establishment phase. Solution Equity injection: POSCO’s $40 million investment will be made in two tranches, supporting development of Mahenge Module 1. Long-term offtake: There is also a binding agreement for 100% of graphite fines from Module 2 over 12 years, with options to extend up to 22 years. Marketing rights: POSCO gains non-exclusive rights to market large flake graphite globally (excluding China), with incentives for offtake. Strategic alignment: POSCO is deepening vertical integration across its battery materials business and securing feedstock critical for its growth. Scale: From day one this investment helps secure commercial scale for the supply chain. Impact De-risked financing: The equity stake and offtake support help reduce financing risk and improve Black Rock’s ability to reach production. Supply chain resilience: POSCO can secure a diversified source of high-purity graphite, strengthening its strategy to source from places other than China. Project momentum: Enables development of Module 1 and future scaling, with planned production of 30,000 tonnes per annum of fines from Module 2. Economic uplift: The Mahenge project could generate jobs and economic activity in Tanzania, supporting regional development goals and providing revenue for parastatals in the power supply and transport sectors. Securing Minerals for the Energy Transition: Finance for Southern Africa 27