Germany turns to Madagascar graphite as Europe seeks alternatives to China

Germany is turning to Madagascar in its search for critical minerals as Europe accelerates efforts to reduce dependence on China for materials used in electric vehicle batteries and clean energy technologies.

• Germany is exploring Madagascar’s graphite sector as Europe looks to reduce reliance on China for battery minerals used in electric vehicles and clean energy.
• German geoscientists recently visited NextSource Materials’ Molo graphite mine to assess Madagascar’s potential as a long-term supplier for Europe.
• Madagascar has emerged as Africa’s top graphite producer, benefiting from rising global demand for critical minerals tied to the energy transition.
• The move reflects growing Western competition for African battery mineral assets as countries seek more secure and diversified supply chains.

Canadian mining company NextSource Materials said German government geoscientists recently visited its Molo graphite mine in Madagascar as part of a wider assessment of the country’s graphite industry.

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The visit, carried out by Germany’s Federal Institute for Geosciences and Natural Resources, highlights how Western governments are increasingly looking to Africa for alternative supplies of battery minerals as geopolitical tensions reshape global supply chains.

Graphite is a crucial raw material in lithium-ion batteries used in electric vehicles and energy storage systems. China dominates both graphite mining and processing globally, creating growing concern in Europe and North America over supply security.

NextSource said German officials were evaluating whether Madagascar could become a reliable source of natural graphite and anode materials for Germany’s industrial sector and the broader European battery market.

“BGR has shown particular interest in evaluating the Molo site… as a benchmark asset and potential supplier of natural graphite and anode materials for Germany,” the company said in a statement.

The study is being conducted with the support of Madagascar’s Ministry of Mines, with the findings expected to be submitted to Germany’s Federal Ministry for Economic Cooperation and Development.

The growing European interest reflects a broader shift in industrial policy across the West.

Germany, Europe’s largest economy and home to major carmakers including Volkswagen, BMW and Mercedes-Benz, has been seeking more secure access to battery minerals needed for the transition to electric vehicles.

The European Union classifies graphite as a critical raw material, while Berlin has launched major financing initiatives to support overseas mineral projects.

These include a €1 billion raw materials fund managed by German state development bank KfW and a broader €2.5 billion investment framework involving France and Italy.

Madagascar has increasingly become an important player in the global graphite market.

According to the United States Geological Survey, the country overtook Mozambique as Africa’s largest graphite producer in 2024, producing about 85,000 tonnes that year. Output stood at roughly 80,000 tonnes in 2025.

Besides NextSource, companies operating in Madagascar’s graphite sector include Tirupati Graphite and Établissements Gallois.

However, some mining projects continue to face operational challenges despite rising global demand.

NextSource’s Molo mine has a production capacity of 17,000 tonnes annually but is currently operating below full capacity because of technical limitations. The company said the site is producing at an annualised rate of around 11,000 tonnes.

Across Africa, countries including Tanzania are also expanding graphite production as investors rush to secure supplies of minerals critical to the global energy transition.

Projects such as the Epanko mine owned by EcoGraf and the Mahenge project being developed by Black Rock Mining are expected to strengthen Africa’s position in the fast-growing graphite market.

Analysts expect competition for African graphite assets to intensify in the coming years as Western economies seek to diversify supply chains away from China and secure long-term access to battery materials.