Syrah Resources inks deal with Samsung SDI to assess anode material supply

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Syrah Resources inks deal with Samsung SDI to assess anode material supply

12:59 CAT | 10 Aug 2023

FILE - Balama, Cabo Delgado, Mozambique. Syrah is a leading producer of natural graphite, with its Balama operation in Mozambique being one of the world’s largest and lowest-cost sources of natural graphite. Syrah also operates a battery anode material plant in Louisiana, USA, where it converts natural graphite into AAM for lithium-ion batteries. [file photo: Syrah Resources]

Australia’s Syrah Resources SYR.AX said on Wednesday it has entered into a deal with South Korea’s Samsung SDI 006400.KS for evaluation of natural graphite active anode supply from Syrah’s Vidalia facility in Louisiana, United States.

Under the deal, both companies would look to test and qualify active anode material, to finalise, by no later than July 10, 2024, to enter a binding offtake agreement for up to 10,000 tonnes per annum, starting from 2026.

Natural graphite active anode material is used in manufacturing lithium-ion batteries for electric vehicles, and can be produced at a lower cost with reduced environmental impact.

The graphite producer also said it was targeting readiness for a final investment decision on the expansion of the vertically integrated Vidalia facility’s production capacity to at least 45 ktpa during the second half of 2023.

A definitive feasibility study on the expansion was completed in April.

Syrah is developing Vidalia as a vertically integrated natural graphite AAM supply solution for US battery supply chains. The company is constructing an 11.25 ktpa AAM facility at Vidalia and plans to expand its production capacity to at least 45 ktpa AAM, inclusive of the 11.25 ktpa AAM capacity. The company expects to make a final investment decision on the expansion project in the second half of 2023.

Syrah’s CEO, Shaun Verner, said that the MOU with Samsung SDI was a significant milestone for the company and demonstrated the quality and competitiveness of its AAM product. He also said that the MOU aligned with Syrah’s strategy of becoming a leading supplier of natural graphite AAM to the global battery market.

Syrah is a leading producer of natural graphite, with its Balama operation in Mozambique being one of the world’s largest and lowest-cost sources of natural graphite. Syrah also operates a battery anode material plant in Louisiana, USA, where it converts natural graphite into AAM for lithium-ion batteries.

Source: Reuters / News Wires