Norge Mining, a prominent Anglo-Norwegian mining company, has announced its decision to acquire Skaland Graphite AS, the leading natural graphite producer in Europe, from the Australian mining firm Mineral Commodities Ltd. This acquisition signals Norge Mining’s expansion into the rapidly growing battery materials market, especially as demand for graphite is expected to rise significantly in the coming years.

The Skaland mine, located on the island of Senja in northern Norway, is renowned as the world’s highest-grade operational flake graphite mine. It stands as the fourth-largest graphite mine outside of China, with an annual output of approximately 10,500 tonnes of graphite. The mine’s Traelen underground graphite deposit, updated with a JORC-compliant mineral resource estimate in 2021, is reported to hold 1.84 million tonnes of graphite at an impressive 23.6% total graphitic carbon (TGC), offering 434,000 tonnes of contained graphite.

Norge Mining plans to leverage the Skaland mine to ramp up production of high-quality battery-grade graphite, which is crucial for the rapidly growing electric vehicle (EV) and energy storage markets. The company also aims to continue supplying its current industrial clients, expanding its reach in various sectors. In addition to its focus on graphite, Norge Mining is progressing with its Eigersund Project in southwest Norway, where it plans to produce other critical battery materials, including phosphate.

The move comes at a time when global graphite demand is set to soar. The graphite market, valued at $24 billion in 2022, is forecasted to grow to $38 billion by 2028. Europe’s increasing reliance on imported graphite highlights the importance of securing local sources. Currently, the European Union imports around 100,000 tonnes of natural graphite annually, with most supplies coming from China, Tanzania, and Mozambique. As the EU reclassified graphite as a strategic raw material in 2023, the need for a stable and secure supply chain within Europe has never been more urgent.

This acquisition also follows China’s recent decision to implement export controls on graphite and other critical minerals, raising concerns about the stability of global supply chains. With China accounting for 97% of the world’s graphite anode production, the push for independent, European-based supplies has become critical. Norge Mining CEO John Vergopoulos emphasized that this development underscores the heightened importance of securing a reliable, local supply of essential raw materials.

The acquisition of Skaland Graphite is expected to be finalized in the first quarter of 2025, pending regulatory approvals and the completion of customary closing conditions. This strategic move positions Norge Mining to capitalize on the growing demand for critical minerals, supporting Europe’s shift toward self-sufficiency in key battery materials.