Syrah Resources (ASX:SYR) - Non Executive Chairman, Jim Askew
Non Executive Chairman, Jim Askew
Source: Syrah Resources
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Syrah Resources (SYR) has executed an offtake agreement with Tesla to supply natural graphite active anode material (AAM) from its planned production facility in the USA
  • Natural graphite concentrate will be transported from the Balama graphite operation in Mozambique and then purified to produce AAM
  • Under the agreement, Tesla will offtake the majority of the proposed expansion of the production capacity at Vidalia for an initial four years for a fixed price
  • Subject to Syrah expanding its capacity beyond 10,000 tonnes per annum, Tesla has the option to offtake additional volume
  • Now suspended, shares in Syrah were trading at $1.33

Syrah Resources (SYR) has executed an offtake agreement with Tesla to supply natural graphite active anode material (AAM) from its planned production facility in Vidalia, Louisiana, USA.

The announcement was released to the market earlier today. By this afternoon the company asked the ASX to place it in a trading halt , which is said was necessary to assist in managing its continuous disclosure obligations.

Syrah is aiming for its AAM facility to be the first major integrated producer outside China of natural graphite active anode material for electric vehicles.

Natural graphite concentrate will be transported from the Balama graphite operation in Mozambique to Vidalia and then shaped into a sphere and purified to produce an active anode precursor material.

This precursor material is then coated and heat tread to produce an AAM.

Under the agreement, Tesla will offtake the majority of the proposed expansion of the AAM production capacity at Vidalia for an initial term of four years for a fixed price.

Subject to Syrah expanding its capacity beyond 10,000 tonnes per annum, Tesla has the option to offtake additional volume.

This agreement provides a foundation to proceed with the initial expansion of Vidalia’s production facility and Syrah plans to make a final investment decision for construction of this expansion in January 2022.

Syrah is also advancing commercial and technical engagement with other customers to develop Vidalia AAM for mass production.

Now suspended, shares in Syrah were trading at $1.33.

SYR by the numbers
More From The Market Herald

" GWR Group (ASX:GWR) pens deal with Jindalee Resources (ASX:JRL) for magnesium project

GWR Group (ASX:GWR) has penned a deal with Jindalee Resources (JRL) for a 70 per cent…

" GTI Resources (ASX:GTR) restarts uranium field program at Thor

GTI Resources (ASX:GTR) expects to commence its 2022 field program next week at the Thor ISR…
Advanced Human Imaging (ASX:AHI) - CEO and Chairman, Vlado Bosanac

" Advanced Human Imaging (ASX:AHI) enters Estonian market

Advanced Human Imaging (ASX:AHI) has entered the Estonian market after signing a binding term sheet with…
The Market Herald Video

" NEXION (ASX:NNG) sees 91pc bump in monthly recurring revenue

NEXION Group (ASX:NNG) reports a strong December quarter with total revenue up 50 per cent to…