Syrah Resources Limited announced the signing of a non-binding memorandum of understanding (MoU) with LG Energy Solution, Ltd.
In a statement, Syrah said that the MoU aims to assess the supply of natural graphite active anode material (“AAM”) from Syrah’s vertically integrated Vidalia AAM facility in Louisiana, USA.
According to the MOU, Syrah and LG Energy Solution will continue qualifying and testing Vidalia AAM while making commercially reasonable attempts to finalise a legally binding offtake agreement for 2 ktpa from Vidalia AAM beginning in 2025 and boosting to at least 10 ktpa Vidalia AAM upon Vidalia’s expansion to a 45 ktpa AAM production capacity by no later than 31 December 2022. In order to increase Vidalia AAM quantities and assist the expanding electric vehicle industry, Syrah and LG Energy Solution will continue their collaboration.
With the launch of an 11.25ktpa AAM facility anticipated for the third quarter of 2023, Syrah is developing Vidalia as a vertically integrated natural graphite AAM supply alternative for USA battery supply chains.
The development of Vidalia’s production capacity to at least 45 ktpa AAM, including 11.25 ktpa AAM, is currently the subject of a Definitive Feasibility Study (DFS). Subject to Syrah Board approval and customer and funding commitments, detailed engineering, procurement, and construction phases for Vidalia’s ensuing expansion will consecutively follow the DFS.
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