Madagascar is asserting itself as a critical link in the global battery materials supply chain. With 85,000 tonnes of natural graphite produced in 2024 and 80,000 tonnes in 2025 according to the USGS (United States Geological Survey), the Great Island is positioning itself among the world's leading producers of this critical mineral — essential for manufacturing anodes in the lithium-ion batteries powering electric vehicles.
Germany looks toward Madagascar
Germany's federal geoscience agency, the BGR (Bundesanstalt für Geowissenschaften und Rohstoffe), is actively evaluating several Malagasy sites as potential suppliers for the German battery industry. European interest is directly linked to the strategy of reducing dependence on China, which dominates graphite processing globally, and to the requirements of the EU Battery Regulation now in force.
Players already on the ground
Several companies are already operating in Madagascar:
- NextSource Materials operates the Molo mine, with a nominal capacity of 17,000 tonnes per year — though annualised output runs around 11,000 tonnes due to technical constraints.
- Tirupati Graphite also holds assets on the island.
- Établissements Gallois has been active in the sector for several decades.
The major challenge remains the processing chain: Madagascar produces raw graphite, but the value added — spheronisation, purification, electrode manufacturing — is captured elsewhere, mainly in China. This industrial sovereignty gap is something authorities are trying to address with international partners.
Why it matters
The global race for critical minerals is reshaping the economic geopolitics of the Indian Ocean. Madagascar, with its graphite, nickel and cobalt reserves, holds a major asset for attracting high-value-added industrial investment. For decision-makers across the region — whether in Mauritius, Réunion or the Seychelles — Madagascar's rise as a strategic supplier is an opportunity to build regional value chains around the global energy transition.
Sources: USGS (2024-2025 data), BGR Germany, Ecofin Agency, NextSource Materials.