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Syrah and Indonesia's big graphite deal

Metal Tech News - April 10, 2024

Syrah makes large natural graphite sale to Indonesia, steps closer to developing a battery anode global supply chain outside of China.

Syrah Resources has delivered a 10,000 metric ton shipment of natural graphite fines from its flagship Balama graphite operation in Mozambique to BTR New Energy Materials in Indonesia, its first large volume natural graphite sale to a battery supply chain participant outside of China.

This sale follows an initial trial container shipment to Indonesia in March and is an important development in Syrah's diversification strategy, as well as solidifying the company's position as a vertically integrated worldwide natural graphite and active anode material (AAM) supply option.

Syrah is an Australia-based industrial minerals and technology company that owns and operates the Vidalia AAM facility in the United States, and aims to be the leading supplier of quality graphite and anode material products to the global supply chain.

Leading up to the start of production at Syrah's Vidalia graphite anode materials plant in Louisiana, China has dominated the global production of lithium battery anode material from natural graphite and accounts for 90% of the global anode material produced.

Seeking to develop its own domestic electric vehicle battery ecosystem, the Indonesian government is capitalizing on increased global demand for the country's huge nickel reserves, as well as the industry's need for minerals like copper and bauxite.

BTR, one of the world's largest battery anode producers, is jointly constructing a US$478 million facility in Indonesia with the anticipated capacity to produce 80,000 metric tons of graphite anode material per year. The anode plant, owned 70% by BTR, is expected to go online in 2024.

For most of the March 2024 quarter, the demand for natural graphite in China was impacted by uncertainty related to the newly imposed red tape surrounding Chinese graphite export licenses. Meanwhile, Syrah says its natural graphite sales remained relatively stable.

Syrah expects to develop a continued sales relationship with BTR, strengthening Balama's provenance and quality within the evolving natural graphite market.


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