Syrah Resources (ASX:SYR)a key supplier of natural graphite, has announced progress at its flagship Balama operation in Mozambique and the Vidalia Active Anode Material (AAM) plant in the United States. The company’s recent $150 million loan to the U.S. International Development Finance Corporation (DFC) will help support operations in Balama, which are integral to meeting North American demand for graphite in the electric vehicle (EV) supply chain. . The loan will also support the facility’s tailings storage expansion and feasibility studies into Balama’s vanadium resources.
This financing comes in a context of difficult market conditions for Syrah. The September 2024 quarterly report revealed that due to low demand and oversupply in the Chinese graphite market, Balama’s operations were suspended, instead selling from existing inventories. Despite the operational hiatus, Syrah has made strategic moves, advancing its U.S.-based Vidalia facility. The Vidalia site has reached 130 tonnes of AAM production, progressing towards full-scale production in 2025, although ongoing sales remain contingent on policy clarity under the US Inflation Reduction Act (IRA).
The shares are trading up 10.53% at 32 cents.