The suspension of the Balama graphite mine in Cabo Delgado due to the political and social crisis threatens the interests of the electric car industry in the United States and Australia.

This suspension of operations at the Balama graphite mine in Cabo Delgado has resulted in a 28% drop in the value of the shares of the company Syrah Resources, which is also facing default on loans financed by the United States government.

Syrah, a supplier of graphite for electric vehicle batteries, including a contract with Tesla, pointed out that the blockades prevented the transportation of materials and led to the temporary closure of operations, with workers laid off.

Syrah Resources, the Australian graphite producer, said in a statement that it had begun talks with US agencies after civil unrest near its mine in Mozambique disrupted production and triggered default clauses on crucial US government loans.

The cessation of Syrah's operations is jeopardizing the US and Australia's desire to avoid dependence on China (the US's biggest competitor) for the supply of graphite-based products.

Data from GlobalData indicates that Mozambique stands out as one of the five largest graphite producers in the world, with China being the global leader.

According to the same data, Mozambique was the world's second largest graphite producer in 2022, with an increase in production of 126%, up from 2021.

The Balama graphite mine is extremely important in the manufacture of electric car batteries for Tesla, the electric vehicle giant owned by billionaire Elon Musk.