The green tech trade war with China is forcing the US to search for new partners for sources of critical minerals for semiconductors and renewable energy. The graphite-rich economies of Madagascar, Mozambique, and Tanzania provide potential alternative sources of graphite for the US, but political instability and governance problems in the region create challenges.
Madagascar and Mozambique are established flake and powder graphite producers with considerable global export shares by volume (21 and 24 percent in 2022, respectively). Tanzania is a smaller producer now but is receiving substantial graphite-seeking foreign direct investment.
Battle-related deaths near mine sites in these countries reflect the threat to investment and operations. A majority of battle-related deaths lie in Mozambique, where the Cabo Delgado region containing its graphite resources has been the site of an insurgency waged by a local franchise of the Islamic State since 2017. Madagascar has fewer battle-related deaths near mines, but both Madagascar and Mozambique are comparatively politically unstable, though for different reasons and with different implications for supply stability. Tanzania has also experienced spillover from the Cabo Delgado conflict. Of the three countries, however, Tanzania has been the most politically stable since independence and could be a safer US partner in East Africa for graphite supplies.
This PIIE Chart is adapted from Cullen S. Hendrix’s Policy Brief, East Africa’s Potential Role in US Graphite Supply Chains. Produced and designed by Alex Martin, Nia Kitchin, and Sam Elbouez.
