• Ryzon is seeking debt funding covering at least 80% of Nachu’s capital needs
• The project targets 236,000 tons of graphite a year over a 10-year mine life
• Weak graphite prices and oversupply from China weigh on financing prospects

Ryzon Materials is still working to line up the funding required to move its Nachu graphite project in Tanzania into development. In a note issued on Friday, January 9, the Australian miner said it is holding discussions with partners, mainly based in China, with the aim of securing debt financing covering at least 80% of the project’s funding needs.

An updated feasibility study released in 2022 estimates that Nachu could produce 236,000 tons of graphite a year over a 10-year mine life. The study puts initial capital expenditure at $364 million. Ryzon has been trying to raise this amount for several years, including through partnerships with various players. In 2025, it appointed US firm Global Corporate Finance (GCF) to support its financing efforts.

Although Ryzon has not disclosed the identities of the Chinese groups involved, the latest update follows the signing of a protocol of agreement with Yintai Xinhai Mining. The agreement is intended to set up cooperation with the Chinese industrial group, which could ultimately be tasked with preparing the construction plan for the Nachu project. Financing is also part of the scope, with Xinhai currently assisting Ryzon in identifying funding options through its network.

Heads of Agreement Signed with Xinhai for Engineering Procurement Construction and Management for the Nachu Graphite Minehttps://t.co/gRYazX9wDS#xinhai #mining #ryzon #lithiumion #ev #batteries #graphite #cleanenergy #electricvehicles #tanzania #nachu $RYZ pic.twitter.com/0BsOfCesKc

— Ryzon Materials (@ryzonmaterials) January 8, 2026

The company’s push comes as global demand for graphite is expected to rise sharply, driven largely by the expansion of the electric vehicle industry. The International Energy Agency forecasts that graphite consumption will exceed 10 million tons by 2040, more than twice the level recorded in 2024. In the near term, however, Ryzon and potential financiers are operating in a weak market environment, characterized by excess supply from China.

This situation contributed to a 20% drop in graphite prices in 2024, according to the International Energy Agency, and is weighing on other Tanzanian graphite projects as well. Epanko, developed by EcoGraf, and Mahenge, operated by Black Rock Mining, are also seeking financing ahead of their respective final investment decisions.

Aurel Sèdjro Houenou