Syrah (ASX:SYR) gets Samsung commitment
August 9, 2023Graphite miner Syrah Resources has received a non-binding deal from lithium-ion battery giant Samsung SDI to jointly evaluate natural graphite active anode material from the Vidalia AAM facility in the USA.
Under the MOU, Syrah and SDI will continue testing and qualifying Vidalia AAM and use commercially reasonable efforts to finalise, by no later than 10 July 2024, a binding offtake agreement for up to 10ktpa AAM from Vidalia commencing from 2026.
The supply will utilise a floating price mechanism upon Vidalia’s expansion to 45ktpa AAM production capacity.
Both parties will continue collaborating and expanding volumes to support the growing EV market.
Syrah is developing Vidalia as a vertically integrated natural graphite AAM supply alternative for USA battery supply chains with the construction of its 11.25ktpa AAM facility, progressing toward completion of construction and start of AAM production.
A Definitive Feasibility Study on expanding Vidalia’s production capacity to at least 45ktpa AAM, including the 11.25ktpa AAM capacity, was completed in April 2023.
Syrah targets readiness for a final investment decision (“FID”) on this further expansion project during the second half of 2023.
The timing of a FID will be determined by customer and financing commitments, as well as consideration of equity market conditions.
Detailed engineering, long-lead items and other procurement and construction activities will follow a Syrah Board-approved FID.
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