Syrah Resources (ASX:SYR) - Managing Director & CEO, Shaun Verner
Managing Director & CEO, Shaun Verner
Source: Syrah Resources
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  • Syrah Resources (SYR) has restarted operations at the Battery Anode Material plant in Vidalia, Louisiana
  • Before last Friday, operations have been suspended since March 23 due to COVID-19 restrictions
  • As it comes back into production, Syrah will make some minor repairs to produce anode active material samples for potential graphite customers
  • The company is focusing on becoming a natural graphite anode material supplier outside of China
  • In fact, the COVID-19 pandemic led the company to further cement its strategy as it realised China shouldn’t be relied on as a sole supplier
  • As a result, the production of active anode material samples at the Vidalia facility is planned for the second half of 2020
  • Shares in Syrah are trading flat at 23.5 cents each

Syrah Resources (SYR) has restarted operations at the Battery Anode Material plant in Vidalia, Louisiana.

Operations have beentemporarily suspendedsince March 23, following control measures implemented to mitigate the spread of COVID-19.

These closures significantly affected the company’s production. At its Balama Graphite Operation in Mozambique, production for the March quarter hit 12,000 tonnes of graphite. This represents a mere quarter of the 48,000 tonnes produced in the March 2019 quarter.

Nevertheless, Syrah kickstarted activities on May 1 while sticking to operating protocols.

The company will complete minor repairs at the Vidalia plant to enable final process and product specifications needed to produce samples of anode precursor material (purified spherical graphite) for potential customers.

Syrah is focusing on its strategy of becoming a natural graphite anode material supplier outside of China.

Currently, 100 per cent of all anode precursor material into the lithium-ion battery supply chain is made in China.

The reliance on China as a sole supplier of critical lithium-ion battery materials was starkly evident during COVID 19. Although COVID-19 shutdowns were initially confined to China, they impacted the entire supply chain as more than 80 per cent of the world’s auto supply chain is connected to China.

Furthermore, Syrah is continuing to make progress on its Feasibility Study for the scale-up of the Vidalia facility.

As a result, the production of active anode material samples is planned for the second half of 2020 through the installation of a pilot-scale coating plant and furnace at Vidalia.

Shares in Syrah are trading flat at 23.5 cents each at 11:34 am AEST.

SYR by the numbers
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