PERTH (miningweekly.com) – Graphite miner Syrah Resources has signed two multi-year binding offtake agreements with US-based active anode material (AAM) processing facilities.
The company on Thursday said that it had inked an agreement with NYSE-listed Graphex Group, which intends to expand its anode production capacity from 10 000 t/y to 55 000 t/y from facilities in China and North America over the next three years.
The multinational company is constructing an AAM processing facility in Michigan, with an initial production capacity of 15 000 t/y, which is planned to be operational by 2024.
An offtake agreement has also been reached with NYSE-listed Westwater Resources, which is constructing an AAM processing facility in Alabama, which is also targeted for a 2024 start. This processing facility could potentially be expanded to a capacity of over 40 000 t/y later this decade, Syrah said.
The company told shareholders on Thursday that the offtake agreements supported the company’s graphite sales diversification strategy, which is aimed at supplying some 100 000 t/y of Balama fines to third-party AAM customers ex-China from 2026.
“Syrah’s marketing and sales strategy will balance integrated consumption through Vidalia, an increasing proportion of sales volume ex-China from 2024 onward, and sales volumes to China,” the company said in a statement.
The company is currently negotiating other commercial arrangements for further ex-China supply with potential anode processing, battery manufacturing and auto OEM customers.