building|export|mining|project|resources|supply chain|products|operations

Tesla supplier Syrah expects more graphite buys ahead of China export ban

Graphite ore

Photo by Bloomberg

26th October 2023

By: Reuters


Font size: - +

Australian producer Syrah Resources on Thursday said it expects buyers outside of China to step up their purchases of natural graphite before stricter export controls on the battery material came into effect on December 1.

China, the world's largest graphite producer and exporter, will require export permits as of December 1 for some graphite products, including spherical graphite used by electric vehicle makers.

Syrah, which has a supply deal with Tesla, mines graphite at its Balama operations in Mozambique and is building a plant in Louisiana where it will produce active anode material (AAM) for batteries. In May, it paused mining at Balama after oversupply hit prices.

The export controls could mean that automakers and suppliers of battery materials will have to accelerate their search for alterative sources of the mineral.

Syrah said that, based on feedback from its customers and analysts, buyers are looking to stockpile graphite to reduce the risk of near-term supply disruptions ahead of the ban, and ahead of China's winter when it tends to produce less natural graphite.

"Any disruption or reduction in China anode precursor or AAM export supply without replacement supply would impact battery production outside China," it said.

Uncertainties regarding the impact of the controls on Chinese supply is expected to continue into 2024, Syrah added, but for now, it does not expect any near-term "meaningful" impact demand from China on its Mozambique project.

"Although the impacts of implementation are not yet known, the announced graphite export controls in China are increasing Government and private sector attention on the strategic importance of Syrah as a unique ex-China natural graphite and AAM supplier in the battery supply chain," the company said in a statement.

Syrah's comments come as Australian government officials visit the United States to shore up cooperation over critical minerals.

Shares in Syrah spiked to 43% to A$0.95 a share on Friday when the export bans were announced before trading at $0.66 cents on Thursday.

The U.S. International Development Finance Corporation (DFC) last month approved a loan of up to $150-million for Syrah's Mozambique operations.

Edited by Reuters



Booyco Electronics
Booyco Electronics

Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...

SAIMC (Society for Automation, Instrumentation, Mechatronics and Control)
SAIMC (Society for Automation, Instrumentation, Mechatronics and Control)

Education: Consulting with member companies to obtain the optimal benefits from their B-BBEE spending, skills resources as well as B-BBEE points


Latest Multimedia

sponsored by

Menar MD Vuslat Bayoğlu
Menar advancing on the manganese front
21st May 2024 By: Martin Creamer

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?







sq:0.222 0.254s - 93pq - 2rq
1: United States
Subscribe Now
2: United States