Mozambique: Graphite, Aluminium and the European Market

Mozambique exports large volumes under two different sets of European rules at the same time. The country is one of the five largest graphite producers in the world. Graphite is a strategic raw material for battery anodes and falls under the Critical Raw Materials Act. Aluminium from the Mozal smelter falls under the Carbon Border Adjustment Mechanism (CBAM). Its definitive phase has applied since 1 January 2026.

Through the Nacala and Beira corridors, landlocked neighbouring countries use the deep-water ports of Mozambique. Mozambique is therefore a transit route as well as a producer. Mozambican trading companies can combine volumes from the whole region.

The European rules for critical raw materials

The Critical Raw Materials Act entered into force on 23 May 2024. It sets benchmarks for the Union for 2030. The Union wants to extract ten percent of its annual consumption within the Union, process forty percent there and get twenty-five percent from recycled sources. For each strategic raw material, at most sixty-five percent should come from any single third country. Projects outside the Union can also get Strategic Project status. These projects get guidance on funding and attention from the financing hub for EU funds and the European Investment Bank. Their off-takers (the buyers of the output) get more certainty. The Commission names off-take agreements with European industrial buyers as one way to contribute to supply security.

A European contract party signs these agreements. A Dutch company can be that party. It signs contracts with European industry and gets access to European trade finance. It also has the import position, with the Article 23 licence. With that licence, the import VAT is deferred to the periodic VAT return. You can read more in our guide to a European entity for critical raw materials.

One company for aluminium and graphite

For aluminium, a Dutch BV can have the status of authorised CBAM declarant. It imports in its own name and buys certificates directly at the EU carbon price. Mozal uses a lot of hydropower from Cahora Bassa, so its carbon intensity is favourable. This is an advantage once verified figures are used in a CBAM declaration. The producer can use this advantage in its own prices, in direct sales to buyers. See an EU entity for CBAM.

For graphite, the same company does the trading. It signs off-take agreements with European anode and battery manufacturers, gets trade finance against European receivables and earns the trading margin on delivered sales. European battery capacity is being built now. In that market, buyers prefer supply agreements with a European contract party to agreements signed offshore.

Structure and practical points

A trading company is a good choice for this transit region. It can combine Mozambican production with volumes from the corridors in its delivered sales to Europe. For both the trading and the declarant position, the company needs substance in the Netherlands. Banks look closely at companies with goods from Mozambique, so we start the bank application at the same time as the incorporation.

Setting up in the Netherlands

A Dutch BV is set up with a notarial deed and registered with the Chamber of Commerce. Your group owns the shares. You can do everything from abroad with a power of attorney. The company can then take on the roles that suit your plans. It can be an off-take contract party, a trading company, a joint venture company or the importer of record.

Banks look closely at commodity trade from this region. We start the talks with the bank at the same time as the incorporation. Further reading: a commodity trading entity and joint venture structures.

Frequently asked questions

Which Mozambican exports fall under CBAM?

Aluminium is one of the six CBAM sectors. It has been covered since the definitive phase started on 1 January 2026. Graphite is outside CBAM and falls under the critical raw materials rules.

Why is hydropower important for Mozambican aluminium under CBAM?

Under CBAM, the importer pays for the embedded carbon in imported goods. Smelting with hydropower has a lower carbon intensity. When verified figures are used in the CBAM declaration, this is a direct commercial advantage.

What role do the Nacala and Beira corridors play?

Through the Nacala and Beira corridors, landlocked neighbouring countries use the deep-water ports of Mozambique. Mozambique is therefore a transit route as well as a producer. A Mozambican trading company can combine volumes from the region and sell them delivered to the buyer.

Can one Dutch entity serve both graphite and aluminium?

Yes. The same BV has the CBAM declarant position for aluminium. For graphite and other minerals, it acts as the off-take counterparty, trading company and importer of record.