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

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

7:46 CAT | 09 Feb 2022

Image: Google Maps

Australian company Syrah Resources has announced a final investment decision (FID) to expand its US-based automotive battery component plant powered by graphite from Mozambique.

“A final investment decision on expanding the Vidalia active anode material facility in Louisiana, USA to 11.25ktpa AAM production capacity has been approved,” it announced on Monday.

By processing ore extracted from Syrah’s mine in Balama (Cabo Delgado), the investment in the plant in the town of Vidalia “establishes Syrah as a vertically integrated [meaning, from origin to end product] natural graphite AAM supply option outside of China”.

A final investment decision on expanding the Vidalia active anode material facility in Louisiana, USA to 11.25ktpa AAM production capacity has been approved.

This establishes $SYR as a large-scale vertically integrated natural #graphite AAM supply option outside of China pic.twitter.com/t1hZNeoasa

— Syrah Resources (@SyrahResources) February 7, 2022

The announcement was made already after, in December, the Australian company disclosed a deal to supply the material (AAM) used to manufacture batteries to electric vehicle brand Tesla.

At the time, Syrah noted that “the importance of the agreement with Tesla is that it provides a basis to proceed with the initial expansion of Vidalia’s production capacity”.

Read: Syrah Resources to supply processed graphite to Tesla

Tesla turns to Mozambique to reduce its dependence on China for graphite – CLbrief

The Balama mine resumed graphite production in March 2021, ahead of schedule, after being shut down for almost a year because of the impact of the Covid-19 pandemic, with travel restrictions limiting workers’ mobility and falling demand.

According to figures from the company, the Balama mine started commercial production four years ago and employs around 650 workers, almost all of whom are Mozambican.

Watch the interview with Managing Director/CEO at Syrah Resources Shaun Verner.