Syrah Resources Limited and Samsung SDI Co. have signed a memorandum of understanding to assess the natural graphite active anode material (AAM) supply from the Vidalia AAM facility.
According to the MOU, Syrah and SDI will keep qualifying and testing Vidalia AAM and make commercially reasonable efforts to finalise, by no later than 10 July 2024, a legally binding offtake agreement for up to 10 ktpa of Vidalia AAM starting in 2026 using a floating price mechanism. This will happen once Vidalia increases its production capacity to 45 ktpa. Both parties will keep working together and increasing volumes to support the expanding EV industry.
Syrah is developing Vidalia as a vertically integrated natural graphite AAM supply option for USA battery supply chains, with the development of its 11.25ktpa AAM facility nearing completion and the start of AAM production. In April 2023, a Definitive Feasibility Study (DFS) on expanding Vidalia’s production capacity to at least 45ktpa AAM, including the 11.25ktpa AAM capacity, was completed. Syrah expects to be ready for a final investment decision (FID) on this further expansion project in the second half of 2023. Customer and funding commitments and equity market circumstances will impact the timing of an FID. A Syrah Board-approved FID will be used for detailed engineering, long-lead components, and other procurement and construction operations.
