Syrah Resources has commenced production at its 11.25ktpy Active Anode Material (AAM) Vidalia facility in the city of Vidalia, Louisiana, USA.

The Vidalia facility is the first vertically integrated natural graphite AAM supplier outside China. The operation will process natural graphite material from the company’s Balama graphite operation in Mozambique. 

The project has been seven years in the making, and the start of production is a major step forward for the company and makes it the first value chain outside China to be fully vertically integrated from mine to production of an AAM. This makes it strategically important for the North American battery chain and is the cornerstone of Syrah’s downstream growth strategy. The next phase of the project will see a 45ktpy capacity plant, built with the support of funding through the US Inflation Reduction Act.  

Syrah has shaken up the graphite supply chain with the size of its Balama operation, which has a capacity of 350ktpy and has supplied Chinese AAM producers with battery-grade graphite feedstock. The security outlook in Mozambique has also improved over the last year, which is assisting with investor confidence.  

The recent Chinese introduction of export controls on natural and synthetic graphite and its products has spurred interest in alternative supply chains in the rest of the World. The US guidance on the definition of a foreign entity of concern governing qualification for the Section 30D tax credit for new electric vehicles also provides an impetus for companies to look beyond the established supply routes.