South Star Begins Graphite Production in Brazil Amid Growing Battery Market Demand

South Star

Canadian battery-metals company South Star has launched graphite production at its Santa Cruz project in Bahia, Brazil, with its first shipment set to leave by the end of October. The company produced an initial one metric tonne of graphite concentrate after completing the project's first phase, a milestone in South Star’s mission to become a leading supplier of battery-grade graphite amid growing demand from electric vehicle and renewable energy sectors.

Scaling to Meet Future Demand

The Santa Cruz project, which initially targets a nameplate capacity of 12,000 metric tons per year (t/yr), is set to undergo multiple expansion phases to scale output as market demand rises. The second phase, slated for 2026, is expected to bring production to 25,000t/yr, with a final phase aiming for 50,000t/yr by 2028. “As the markets and clients need more material, we are committed to meeting that demand,” said South Star’s CEO Richard Pearce, emphasizing the company’s strategy to deliver reliable, high-quality graphite concentrate to clients worldwide.

Brazil holds an advantageous position in the graphite industry, possessing one of the largest reserves globally, with an estimated 74 million tons of natural graphite, according to the US Geological Survey (USGS). In addition to its Santa Cruz project, South Star operates a graphite project in Alabama, aiming to develop a diversified, multi-asset portfolio in key markets for battery metals.

South Star to Launch Graphite Production in Brazil in September

Canadian battery-metals project developer South Star is set to commence production at its graphite mine in Brazil in September. The company announced today that it has "substantially completed" the first phase of construction at its Santa Cruz graphite mine, located in the northeastern state of Bahia.

The initial phase of the project features a plant with a nameplate capacity of approximately 12,000 metric tonnes per year. The plant is currently in its commissioning phase, and South Star aims to fulfill its first graphite purchase orders in the fourth quarter of this year.

Looking ahead, Santa Cruz's phase 2 expansion is expected to increase production to 25,000 tonnes per year starting in 2026. Phase 3 will further ramp up production to 50,000 tonnes per year by 2028.

Brazil is recognized as the world’s second-largest graphite producer, with over 80 years of continuous mining activity, according to South Star.

Freeport-McMoRan Forecasts Lower Copper Sales, Higher Molybdenum Sales in 2025

Freeport-McMoran

Copper Sales Decline Amid Export Restrictions and Shipment Timing

US mining giant Freeport-McMoRan expects lower copper sales in 2025, projecting 4 billion pounds (1.79 million metric tons), down from 4.07 billion pounds in 2024. The company's fourth-quarter copper sales fell to 992 million pounds, reflecting lower ore grades and shipment timing.

Copper production remained stable at 4.21 billion pounds in 2024, with Q4 output dropping slightly to 1.04 billion pounds. Average realized copper prices rose to $4.21/lb in 2024, marking a $0.36/lb increase from 2023.

Molybdenum Sales and Production Outlook

Freeport expects to sell 88 million pounds of molybdenum in 2025, following a 3-million-pound drop in 2024 sales to 78 million pounds. Molybdenum production slipped to 80 million pounds in 2024, though Q4 production increased to 22 million pounds.

The average molybdenum price fell by $2.87/lb to $21.77/lb in 2024, despite a Q4 price increase to $22.23/lb.

Indonesian Operations and Export Challenges

Indonesia's copper production in Q4 2024 dropped 60 million pounds year-over-year to 429 million pounds. Despite this, annual production increased to 1.8 billion pounds, up from 1.66 billion pounds in 2023. Indonesia banned copper concentrate exports from January 1, but Freeport has requested an exemption until its fire-damaged smelter is repaired by mid-2025.

Expansion Plans in North and South America

In North America, Q4 copper production increased slightly to 321 million pounds, while South America saw a 5-million-pound increase to 291 million pounds. For 2024, total production fell in both regions.

Freeport is evaluating a 200-250 million lb/year expansion at its Bagdad mining complex in Arizona, requiring copper prices between $3.50-4.00/lb to justify the $3.5 billion investment. The company is also considering expansions at Safford/Lone Star in Arizona and a new mill project in Chile, with feasibility studies underway.