Alkemy and Syrah partner on UK plant to process graphite from Mozambique – Watch

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Alkemy and Syrah partner on UK plant to process graphite from Mozambique – Watch

11:24 CAT | 01 Feb 2024

FILE -Syrah’s Balama graphite project in Cabo Delgado, Mozambique, is the world’s largest integrated graphite operation. [File photo. Syrah Resources]

The Winston AMM facility will use natural graphite feedstock from Syrah’s Balama graphite project in Mozambique, the world’s largest integrated graphite operation

London-listed Alkemy Capital Investments said Tuesday its new subsidiary Tees Valley Graphite (TVG) is studying a 50-50 joint venture with Australia-listed Syrah Resources. The firms signed a memorandum of understanding to establish a commercial-scale AMM plant at the Wilton International Chemicals Park, in the Teesside Freeport – where Alkemy’s Tees Valley Lithium is developing a lithium refinery.

#ALK In this short, clip Paul discusses todays news on the 50/50 JV with @SyrahResources to create the UK’s first #Graphite Anode facility at the Wilton Chemical Park alongside ALK’s planned #Lithium hydroxide facility pic.twitter.com/SF2f1vydqi

— Alkemy Capital Investments Plc (LON:ALK) (@AlkemyCapital) January 30, 2024

The proposed joint venture will process Syrah’s natural graphite from its Balama operations in Mozambique into AMM to supply OEMs in the UK and European battery markets.

Initial production is planned at 20,000 tonnes/year of AMM.

TVG managing director Kien Huynh told Kallanish that first production is expected in around four years, subject to a final investment decision. The timeframe is based on around two years to conclude the feasibility work (definitive feasibility study and front-end engineering design) and two years for construction.

Syrah and Alkemy intend to enter into a binding JV agreement “in the near-term,” which will pave the way for a £250-300 million ($316.5-378m) investment in the UK’s battery supply chain. The project is set to be financed through green bonds, in combination with a mix of debt, strategic equity finance and grant funding.

“We believe that the evaluation of the Wilton AAM facility is a very timely development as UK and European customers grow increasingly concerned over potential future supply shortages especially in light of the recent export restrictions imposed by China,” notes Huynh.

“Despite headwinds seen over the past 12 months for the entire sector, the medium to longer term narrative hasn’t changed,” the executive adds. “The global decarbonisation and energy transition economy will continue to grow over the coming decades, which will see the supply of critical minerals such as graphite, go into deficit as there is a shortage of both upstream and in particular, downstream/midstream processing capabilities outside of China, to meet rising global demand.”

Citing third-party data, Alkemy says graphite demand will increase to around 6.5 million tonnes by 2033, from roughly 1m t in 2022. The need for localised and diverse supply chains, offers the Wilton AMM project a “promising future,” the company says.

The planned facility will offer European EV and energy storage markets a “low-carbon, ESG-compliant, and traceable source of natural graphite active anode material,” Huynh adds.

Syrah has a graphite production capacity of 350,000 t/y at its Balama Operation, in Southern Cabo Delgado Province, Mozambique. The company is also working to expand AMM production in Louisiana, US with the Vidalia project. The facility currently has capacity to produce 11,250 t/y of AMM, but a project expansion to 45,000 t/y is expected to be approved before July.

By Gabriela Farhangi

Our Balama Graphite Operation is a global leader as the world’s largest integrated natural #graphite operation, with 350ktpa capacity and 50+ year life. We are committed to sustainability and regarded as an important ex-China supplier; watch our Balama video below. $SYR pic.twitter.com/XzsO3ltISn

— Syrah Resources (@SyrahResources) November 14, 2023

#ALK is pleased to announce its wholly owned subsidiary, Tees Valley #Graphite has entered into a non-binding MOU with @SyrahResources for a 50/50 JV to develop a commercial-scale natural graphite active anode material processing facility (“Wilton AAM facility”)

— Alkemy Capital Investments Plc (LON:ALK) (@AlkemyCapital) January 30, 2024

Source: Kallanish / Alkemy