Syrah estimates $539 mln in costs for Louisiana plant expansion

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Syrah estimates $539 mln in costs for Louisiana plant expansion

6:30 CAT | 27 Apr 2023

FILE - Syrah Resources' logistic operations in Balama, Mozambique [File photo: Syrah Resources]

Australia’s Syrah Resources Ltd said on Thursday it expects capital costs of $539 million to expand its Louisiana-based facility that produces graphite-based active anode material (AAM), a key component for lithium-ion batteries.

The graphite producer has confirmed an expansion is technically viable but it is yet to secure full funding for the development. Shares fell about 8.5% against a broader market decline of 0.4%.

Syrah said it would progress engineering and permitting for the expansion project “which remains contingent on the execution of offtake and funding commitments.”

The company is expanding Vidalia’s production capacity to 45,000 tonnes per annum, as it prepares for a final investment decision (FID) proposal by no later than December 2023.

A DFS on expanding our Vidalia #AAM Facility to 45ktpa AAM production capacity has confirmed it is technically viable, financially robust and expected to generate value for shareholders and stakeholders.
FID due before the end of 2023.
Read more: https://t.co/H5q6lWXzM9 $SYR pic.twitter.com/5PBsAzC7Rt

— Syrah Resources (@SyrahResources) April 27, 2023

READ: Syrah Resources to expand U.S graphite plant after $220 mln grant

In July last year, the U.S. Energy Department closed a $102.1 million loan to the company for the facility’s expansion, which is expected to supply about 5% of the AAM required by North American battery manufacturing facilities.

Syrah also executed a new convertible note deed with pension fund AustralianSuper for up to A$150 million ($99.03 million), proceeds from which will partly go towards preparing Vidalia for the FID proposal, it said in a separate announcement.

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Syrah approves FID on expanding Vidalia AAM facility in USA to process Mozambique graphite

Source: Reuters