Syrah Resources, an ASX-listed industrial minerals and technology company, has signed a non-binding memorandum of understanding with lithium-ion battery manufacturer Samsung SDI to evaluate natural graphite active anode material (AAM) supply from Syrah’s Vidalia AAM facility in Louisiana in the US.
As part of the agreement, Syrah and Samsung SDI will continue testing and qualifying Vidalia AAM and use commercially reasonable efforts to finalise a binding offtake agreement for up to 10ktpa of AAM from Vidalia starting from 2026.
Natural graphite active anode material is used in the production of lithium-ion batteries for electric vehicles and can be produced at a lower cost with reduced environmental impact.
The partnership is part of both companies’ commitment to supporting the growing electric vehicles market.
Syrah is developing Vidalia as a vertically integrated natural graphite AAM supply alternative for USA battery supply chains with the construction of its 11.25ktpa AAM facility progressing towards completion of construction and start of AAM production.
A feasibility study on the expansion of Vidalia’s production capacity to at least 45ktpa of AAM was completed last April. Syrah said a final investment decision on the expansion project is underway and is expected by the second half of 2023.
