Australia-based industrial minerals and technology company Syrah Resources will restart operations at the Battery Anode Material (BAM) plant in Louisiana, in the US, the company said in a release last month.

This follows the temporary suspension of production in March of both the BAM plant, as well as its Balama Graphite Operation, in Mozambique which occurred in line with control measures implemented to mitigate the spread of the Covid-19 virus.

In the statement released last month, the company noted that operating protocols had been designed to enable the safe restart of operations from May 1, 2020.

Upon restart, minor repairs were completed to enable BAM to produce samples of anode precursor material for qualification with potential customers – an important milestone in Syrah’s strategy to become the only vertically- integrated supplier of natural graphite anode material outside China.

The company noted that the reliance of the global battery supply chain on China for supply of critical lithium-ion battery materials was starkly evident in the early stages of the Covid-19 crisis. Although Covid-19 shutdowns were initially confined to China, they impacted the entire supply chain as more than 80% of world’s automotive supply chain is connected to China. It pointed out that several electric vehicle manufacturers paused production as early as February owing to battery supply shortages.

Meanwhile, the feasibility study for the scale-up of the Vidalia facility post product qualification continued to progress during the period of suspended operations.

Further, in a separate release, the company noted that sales orders from existing finished product inventory were dispatched from its Balama operation.

At the time the company continued to dispatch finished product from Balama, through the Port of Nacala, in northern Mozambique. However, it noted that the situation was subject to change, in light of the pandemic.

Syrah also noted that it expects its end of quarter cash balance to be broadly aligned to its existing guidance of $64.6-million.

The company believes this level of liquidity, and the recently implemented company-wide cost restructuring, positions the company well to manage an extended period of uncertainty, it said in the release.

Further, Syrah pointed out that it continues to implement protocols and procedures to best ensure the safety of all personnel and to assess and manage potential operational risks resulting from Covid-19.

“The company continues to assess the latest information from credible sources and is following the advice of governments in the jurisdictions in which we operate.”