The European Bank for Reconstruction and Development (EBRD) has acquired a 17.36% stake in ASX-listed company Sarytogan Graphite, which is exploring the Sarytogan graphite deposit in Kazakhstan’s Karaganda region, for A$5m (€3m).

This marks EBRD’s inaugural direct equity investment in Central Asia’s graphite and critical raw materials industry.

The funds will be used to support the company’s development activities.

This includes financing a feasibility study and addressing its working capital needs.

Under the EU’s classification of critical raw materials (CRM), graphite is designated as a CRM mineral. It is widely used in various applications, such as manufacturing electric vehicle batteries, in the electric power industry, and in metallurgy.

The Sarytogan graphite deposit is one of the largest graphite reserves globally, with the potential to emerge as a leading source of natural graphite in the region and beyond.

The project aligns with the EBRD’s updated mining sector strategy, which emphasizes the mining industry's role in fostering greener economies.

It supports the exploration, development, production, and processing of metals and minerals vital for green technologies, digital advancements, and emerging innovations.

The investment also supports the EU-Kazakhstan strategic partnership on raw materials, batteries, and renewable hydrogen.

It continues the EBRD’s collaboration with Kazakhstan’s authorities, which contributed to the adoption of the new Subsoil Use Law.

To date, the EBRD has invested €10.2bn across 324 projects in Kazakhstan, primarily focusing on supporting private entrepreneurship.