Syrah Resources (ASX:SYR), a key supplier of natural graphite, has announced progress on its flagship Balama operation in Mozambique and the Vidalia Active Anode Material (AAM) facility in the US. The company’s recent US$150 million loan from the US International Development Finance Corporation (DFC) will help sustain operations at Balama, which is 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 on Balama’s vanadium resources.
This financing comes amid 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 paused, selling from existing stock instead. Despite the operational pause, Syrah made strategic moves, advancing its US-based Vidalia facility. The Vidalia site achieved 130 tonnes of AAM production, progressing toward full-scale production in 2025, although ongoing sales remain contingent on policy clarity under the US Inflation Reduction Act (IRA).
Shares are trading 10.53% higher at 32 cents.
