Namibian Graphite Mine to Restart: Powering Saudi Arabia’s Battery Revolution
According to African Business, Canadian mining company Northern Graphite is set to restart production at the Okanjande graphite mine in Namibia by the end of 2027. This mining operation, which has faced prior setbacks, will now play a pivotal role in supplying graphite concentrate to a new $200-million battery anode material (BAM) plant in Saudi Arabia.
Okanjande Mine: A Restart with Major Investments
The Okanjande mine, originally placed under maintenance just two years after its production launch in 2016, will receive a $35 million investment to resume operations. These funds will be allocated toward critical infrastructure upgrades, including a new tailings dam, a solar power farm for energy supply, and improved water connectivity.
Once operational, the mine will provide up to 50,000 tons of graphite concentrate annually for the BAM plant in Yanbu Industrial City on Saudi Arabia’s Red Sea coast. The first phase of processing (refining ore from 5-6% graphitic content to 96-97%) will take place in Namibia, with further refinement occurring at the Saudi facility.
Locally, this project is expected to create between 200 and 300 jobs, signaling an economic boost for Namibia. However, questions linger as to why more refinement is not planned within Namibia, keeping added value within African borders.
Global Context: Graphite’s Role in a Green Future
Graphite has become a critical resource as the global shift to renewable energy accelerates. Its primary use in battery anodes for electric vehicles (EVs) and energy storage systems has driven demand exponentially. According to the International Energy Agency, global EV sales are expected to surpass 35 million by 2030, amplifying the need for minerals such as graphite.
Northern Graphite’s strategic deal taps into Saudi Arabia’s existing advantages in infrastructure, including a steady power supply, industrial-grade water, and access to key chemicals such as hydrofluoric acid. This highlights a recurring challenge for African nations: limited industrial infrastructure often prevents the full beneficiation of their natural resources locally.
Future Opportunities and Challenges
While the Okanjande mine’s restart marks a significant step forward for both Namibia and Northern Graphite, infrastructure constraints pose long-term questions. CEO Hugues Jacquemin admitted that a local BAM plant in Namibia was considered but deemed unfeasible due to insufficient access to water, reliable energy, and specialized raw materials required for advanced refinement.
Still, Namibia’s resource-rich status positions it as a key player in supplying critical minerals for the energy transition. By investing in infrastructure and policy measures, the country could claim a greater share of the battery value chain—increasing revenues while boosting employment and capacity.
As Northern Graphite works with Saudi partner Al Obeikan Group to secure financing for the BAM facility, industry observers expect other players to enter the fray. Competing mining companies, particularly in Africa and Canada, could be encouraged to explore partnerships with global renewable supply chains.
Conclusion
The Okanjande mine’s revival highlights the critical intersection of resource availability, global energy demands, and regional infrastructure limitations. As demand for EV batteries and energy storage accelerates, will more African nations tap into value-added industries around their abundant mineral wealth?
What do you think? Could greater investment in African energy infrastructure unlock transformative growth for local industries?
