Australia’s Syrah Resources on Friday announced a binding offtake agreement with Korean battery materials group Posco Future M for natural graphite fines from the Balama mine, in Mozambique.
The offtake is an important development in the company’s sales strategy to transition Balama natural graphite sales to a more geographically diversified and commercially aligned customer base.
Syrah will supply Posco with up to 2 000 t a month in the year following commissioning of Balama and between 2 000 t a month and 5 000 t a month at the option of Posco Future from the second year until the end of the six-year term.
The offtake agreement with Posco is in addition to agreements with Graphex Group and Westwater Resources for Balama natural graphite supply. Besides these, Syrah is currently commercially engaged with seven additional ex-China natural graphite anode projects for long-term natural graphite supply from the African mine.
Syrah noted that the Balama natural graphite offtake agreements with ex-China anode customers and government policy developments highlighted the strategic importance of the company to the global battery and anode supply chain, offering customers a large volume, reliable source of natural graphite supply outside of China.