• Australia’s Ryzon to sell Nachu project to U.S.-listed Sow Good

• Deal values asset at about $107 million after years of delays

• Move reflects growing global interest in graphite for batteries

Australian mining company Ryzon Materials said on April 21 it had agreed to sell its Nachu graphite project in Tanzania to U.S.-listed Sow Good Inc, in a deal valued at 150 million Australian dollars (around $107 million). The transaction follows years of delays in developing the project, which is seen as a key future source of battery minerals.

The deal will be settled entirely through the issuance of shares by Ryzon to Sow Good, adjusted for the seller’s debt. It remains subject to approval by Sow Good’s shareholders, as well as regulatory clearance in Tanzania. No closing date has been announced, as both parties must still meet the required conditions.

Through this transaction, Ryzon is handing over development of the project after years spent seeking financing. The company had previously engaged with other partners, including Global Corporate Finance and Yintai Xinhai Mining. A 2022 feasibility study estimates that Nachu could produce up to 236,000 tons of graphite per year over a ten-year period, with initial capital costs of about $364 million.

A sharp strategic shift for Sow Good

The agreement marks a significant shift for Sow Good, a Texas-based company with no established track record in mining. Until now, it has focused on producing freeze-dried candies and snacks, raising questions about its ability to lead a project of this scale.

Sow Good, however, frames the acquisition as a step toward transforming itself into a critical minerals company. The move reflects rising global demand for graphite, a key component in electric vehicle batteries. According to the International Energy Agency, global graphite consumption could reach 10 million tons by 2040, more than double 2024 levels.

“Today marks the beginning of Sow Good’s transformation into a critical minerals and battery anode company,” said Chief Executive Sam Goldberg, describing Nachu as one of the most promising undeveloped graphite deposits, backed by a completed feasibility study and strong financial metrics.

To move the project forward, Sow Good plans to focus on securing financing once the deal is finalized. The company is considering a mix of debt and partnerships with strategic investors. The project comes at a time when the United States is seeking to expand its presence in Africa’s critical minerals sector.

Aurel Sèdjro Houenou