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A new era of industrial policy in Mozambique?

Adding value to natural resources would boost development and cut poverty, but won’t happen without deliberate policy choices

Today’s front pages in Maputo. Photo © Faizal Chauque / Zitamar News

Good afternoon. Another opportunity for Japanese investment in energy in Mozambique, that we didn’t consider yesterday, is in the growing industry of producing batteries. Japan is the home of major battery producer Panasonic, a partner of Tesla and Toyota in battery production in the US and Japan.

The Leader continues after the Latest from Zitamar News below. Subscribers on the Zitamar News tier can read the full leader here.

The latest from Zitamar News:

Cabo Ligado Weekly: 24-30 April 2023 — Cabo Ligado
Cabo Ligado — or ‘connected cape’ — is a conflict observatory established by ACLED, Zitamar News, and MediaFax to monitor political violence in Mozambique.
  • Intense clashes around Mandava village in Muidumbe district
  • Security forces unevenly distributed across Cabo Delgado
  • Human Rights Watch condemns legalization of Local Forces

Also available in Portuguese

Cabo Ligado Semanal: 24-30 de Abril de 2023 — Cabo Ligado
Cabo Ligado é um observatório de conflitos em Moçambique lançado pela ACLED, Zitamar News e MediaFax.

From the Zitamar Live Blog:

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Zitamar Mozambique Live Blog
Islamic State Mozambique has acknowledged clashing with the Mozambican Armed Defense Forces around Mandava village in the Muidumbe district of Cabo Delgado province last Saturday, claiming to have killed five soldiers and wounded ten more. Local sources told Zitamar that casualties were evacuated t…

Mozambique in turn is a major producer of graphite, a key ingredient in batteries for electric vehicles. The biggest miner in Mozambique, Australia’s Syrah Resources, sends graphite from Cabo Delgado to an anode factory it has established in Louisiana, US.

Zitamar asked Syrah in 2020 why they hadn’t set up that factory in Mozambique; a company spokesperson at the time said they had chosen the US primarily due to “access to low cost power and hydrofluoric acid,” as well as “co-location and proximity to potential customers.” He said, however, that Syrah “will continue to assess the feasibility of doing the battery anode material beneficiation steps in Mozambique.”

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