Name of the Project
Vidalia active anode material (AAM) project.
Location
Vidalia, Louisiana, US.
Project Owner/s
Syrah Technologies.
Project Description
The project will add 16 722 m2 of building and processing space to its existing 4 645 m2 facility, enough to install equipment and systems for processing natural graphite into AAM used in lithium-ion batteries for the electric vehicle industry.
The initial expansion will allow for the expansion of the Vidalia AAM facility to 11 250 t/y of AAM.
Potential Job Creation
Louisiana Economic Development estimates that the project will result in 52 indirect jobs for a total of 88 new jobs in Louisiana’s central region.
Net Present Value/Internal Rate of Return
Not stated.
Capital Expenditure
$176-million.
Planned Start/End Date
Production of the 11 250 t/y AAM Vidalia facility is targeted to start in the September 2023 quarter, with an 18-month ramp-up period to the full production rate.
Latest Developments
Syrah Resources has been considered for a grant of up to $220-million from the US Department of Energy (DoE) to support the potential expansion of its Vidalia facility.
Syrah is completing a definitive feasibility study (DFS) on the expansion of Vidalia’s production capacity to 45 000 t/y of AAM, inclusive of initial capacity of 11 250 t/y of AAM. Detailed engineering, procurement and construction phases will follow the DFS sequentially, subject to Syrah board approval and customer and financing commitments.
If successfully concluded, the DoE grant will be highly attractive to Syrah and would fund a significant proportion of estimated capital costs for Vidalia’s expansion.
Syrah will now work with the DoE’s Office of Manufacturing and Energy Supply Chains, and the Office of Energy Efficiency and Renewable Energy, to negotiate and finalise a binding funding agreement for the grant, with Syrah required to satisfy certain conditions precedent before receiving the grant.
The DoE grant is a separate funding opportunity from the DoE’s Advanced Technology Vehicles Manufacturing (ATVM) loan programme, under which Syrah secured a $102-million loan facility earlier this year to support the expansion work at Vidalia.
Syrah has told shareholders that it does not expect its binding ATVM loan to be affected by a binding funding agreement for the DoE grant.
Syrah has also concluded a nonbinding memorandum of understanding (MoU) with global lithium-ion battery manufacturer LG Energy Solutions, under which the two companies will evaluate natural graphite AAM supply from the Vidalia project.
Under the MoU, Syrah and LG Energy Solutions will continue testing and qualifying Vidalia AAM and use commercially reasonable efforts to finalise a binding offtake agreement for 2 000 t/y of AAM from Vidalia, starting from 2025 and increasing to at least 10 000 t/y of AAM upon Vidalia’s expansion, by the end of December.
Syrah and LG Energy Solutions will also continue to cooperate to expand Vidalia AAM volumes and support the growing electric vehicle market.
Meanwhile, the initial expansion of the Vidalia project’s capacity to 11 250 t/y is progressing well, with detailed engineering on the project more than 89% complete, following a final investment decision in February this year.
Detailed engineering is expected to be completed in the December 2022 quarter, allowing for the required equipment fabrication and construction to progress in line with the schedule.
Procurement activities for all key construction activities and equipment are substantially complete, with contracts for more than $130-million in total installed capital costs awarded, including for major mechanical and equipment work packages. All remaining significant construction and equipment supply contracts will be awarded in the December 2022 quarter.
Construction activities in the December 2022 quarter will focus on completion of concrete foundations, mechanical and structural steel delivery, steel erection for permanent buildings, piping manufacturing, and the delivery and installation of major equipment.
Key Contracts, Suppliers and Consultants
None stated.
Contact Details for Project Information
Syrah Resources, tel +61 3 9670 7264 or email enquiries@syrahresources.com.au.