Strategic Mineral · China+1 Optionality

The China+1 case for Madagascar graphite.

Graphite is on every critical-mineral list — US, EU, Japan, Korea, India. China remains the graphite industry's central supplier and processing hub. If you build batteries, refractories, or anything that pours metal, your supply map benefits from an additional China+1 option.

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1 — The October 2023 inflection

In October 2023, China's Ministry of Commerce announced export-licensing controls on natural graphite — including the high-purity, high-hardness, and large-flake grades most relevant to battery anodes and aerospace applications. The controls are not an outright ban: they add documentation and licensing steps for certain export categories.

What licensing latency means in practice: lead times lengthen by weeks, shipment volumes become uncertain, and price discovery becomes less transparent. In 2024–2025, this created visible spot price volatility and accelerated Western OEM procurement reviews.

Note:The licensing regime highlights why many buyers prefer China+1 redundancy. Gallois shipments add a Madagascar-origin lane with standard Malagasy export documentation and the buyer's import clearance.

2 — The critical-mineral map

Graphite is now a designated critical mineral in every major industrialised economy. This drives procurement policy, incentive eligibility, and in some cases mandatory supply-chain audits for downstream manufacturers.

🇺🇸 United States

Critical Minerals List (2022 update)

Graphite designated as critical; IIJA and IRA funding tied to domestic/allied sourcing.

🇪🇺 European Union

Critical Raw Materials Act (2024)

Graphite listed as strategic raw material with domestic/diversified sourcing benchmarks.

🇯🇵 Japan

METI Strategic Minerals Policy

Graphite included in Japan's critical minerals framework for battery supply security.

🇰🇷 South Korea

MOTIE Critical Resources Act

Graphite among 33 core minerals targeted for supply-chain diversification.

🇮🇳 India

Critical Minerals Mission (2023)

Graphite designated; India seeking diversified anode material options for domestic gigafactory pipeline.

3 — Why Madagascar

Country-level sanctions position

As of May 2026, Madagascar is not subject to broad country-level US, EU, UK, or UN sanctions. Each shipment still requires counterparty, beneficial ownership, bank, vessel, and end-use screening.

AGOA eligibility

Madagascar is currently listed as AGOA-eligible by USTR. Any preferential tariff outcome depends on HS code, rules of origin, direct shipment, importer documentation, and CBP determination.

Deep-water port 45 km from Site No. 1

The international port of Toamasina is the closest major Indian Ocean port to the mine. Transit times: Europe 20–30 days, East Asia 15–20 days, US East Coast 30–45 days.

Stable operating environment since 2018

Madagascar has maintained a functioning constitutional government since the 2018 election. The IMF Article IV consultation is consistently positive on macro fundamentals.

4 — Why Gallois specifically

Etablissements Gallois is not a junior miner. Operating since 1901 and scaled to 140,000 tonnes annual capacity under Graphite Energy Inc., it represents established infrastructure with a documented track record — the kind of supplier that passes procurement audits, not just spot enquiries.

Major China+1 natural flake graphite source by reported capacity (140,000 t/a across two active sites)
Same metallurgy as Heilongjiang and Inner Mongolia benchmarks — crystalline flake with high carbon purity, suitable for the same downstream processing routes
Documented buyer roster including Vesuvius, SGL Carbon, RHI Magnesita, Morgan Advanced Materials, and Superior Graphite
AI-assisted spec matching — our platform can map your current reference grade against Mada Graphite grades and flag potential equivalence or required adjustment for technical review

Policy and tariff statements are informational only and should be reviewed by the buyer's customs, sanctions, and export-control counsel before shipment.

5 — What we offer buyers re-mapping their supply

Long-term supply agreements with locked volumes and USD floor pricing
Origin-traceable lots with mine-to-port chain-of-custody documentation
AI-assisted grade comparison to support sample qualification, COA review, and application-specific testing
KYC pack including entity verification, beneficial ownership declaration, and export licence copies
Dual-source structure: position Mada Graphite as a strategic second source, not your only one

6 — Honest risks (and mitigations)

We believe credible sourcing narratives require naming real risks, not just listing advantages.

⚠ Cyclone season

The Indian Ocean cyclone season (November–April) can affect Toamasina port operations for days to weeks. We mitigate with forward inventory held at the port warehouse.

⚠ Currency: Malagasy Ariary volatility

All Gallois contracts are denominated in USD. Ariary exposure is on the production cost side only, not on the buyer's payable.

⚠ Single-country exposure

Yes, Madagascar is one country. We offset this with two active mining sites (No. 1 + No. 2) and a third site (Ambalafotaka) held in reserve — not a single-site operation.

⚠ Exploration upside (unverified scale)

Only 1% of the 280 km² concession has been explored. The 240M-tonne reserve figure is an Australian geologist estimate — treat as indicative, not certified.

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