Armadale Capital Plc to provide an update on the Mahenge Liandu graphite project in Tanzania. Global demand for graphite used in the anodes of electric vehicle batteries increased from 448,044 tonnes in 2022, to 631,821 tonnes in 2023, mainly due to a significant uplift in the volume of electric vehicles and household battery storage units produced. This represented a 41% increase in 2023 and demand is projected to reach 11,200,000 tonnes by 2040, according to The International Energy Agency.

The use of natural graphite in batteries is pivotal to releasing stored energy and graphite is the largest weighted component in current battery chemistries. It has the potential to grow from 30% of the anode to 50% by 2030 - as referenced by Benchmark Minerals and others. The World Bank expects almost 53.8% of mineral demand from energy storage to come from graphite by 2050.

This is almost a 500% increase in current demand levels, according to The World Bank's "The Mineral Intensity of the Clean Energy Transition" study. The Hague Centre for Strategic Studies forecasts EV Battery demand growing at a compound rate of 41% per annum from 2020 to 2025. With China moving towards being a net-natural importer of graphite, further deficits in the supply of natural graphite are forecast, according to Shruti Kashyap, Product Director of Anodes from Benchmark Mineral Intelligence.

The Board is of the view that both the Chinese restriction on graphite exports, as well as the extension of US restrictions on the importation of Chinese graphite could have an impact on graphite prices. The near-term shortage of funded graphite projects and the forecast increasing global demand could lead to increased interest in obtaining graphite from non-Chinese sources. The forecast increase in demand, as well as the requirement for the US and Western economies to source non-Chinese graphite could provide significant momentum for Mahenge.

The Board believes that the project will provide graphite with high purity, low cost and strong ESG credentials, alongside being located in Tanzania, which provides optionality for the western supply chain, especially the USA Armadale paused the FEED study whilst the Company monitored developments in the graphite market and the ability of graphite projects in Tanzania to obtain funding. With material progress on both fronts since then and the appointment of Greg Entwistle to the Armadale Board, the Company is considering recommencing the FEED study so the project is construction-ready when funding is secured. Recently, two nearby projects have made material progress on financing and development, which is encouraging for potential future progress at Mahenge.

Black Rock Mining Ltd. have committed to invest $33 million AUD in upgrading roads, relocating the local populace and connecting hydro-electric power to Mahenge. Ecograf Ltd. have entered into an MOU with TANESCO to supply grid power from these power lines.