Syrah Resources gains 10pc on Mozambique graphite sales deal
Link copied to
ASX-listed graphite play Syrah Resources will sell 30,000 tonnes of graphite from its Balama operation in northern Mozambique to the world’s largest battery anode manufacturer.
Investors welcomed the news with the stock (ASX:SYR) climbing almost 10 per cent to $3.61 by 11am AEST.
The binding sales agreement is with Chinese manufacturer of graphite anode materials for the lithium-ion battery market, BTR New Energy Materials, and will cover the first year of production from Balama. All other terms of the agreement are confidential, the company said.
Syrah managing director and CEO Shaun Verner said the relationship with BTR will see Syrah’s high quality graphite placed into the lithium- ion battery market.
“With battery development receiving strong policy support from governments across the world and increasing consumer demand, Syrah’s Balama operation will form a baseload of high quality natural graphite supply for major battery anode manufacturers globally,” he said.
Syrah original signed a non-binding memorandum of understanding (MoU) with BTR in March covering sales and supply chain cooperation.
Balama is close to construction with commissioning activities beginning in May. Production is targeted to supply traditional industrial graphite markets and emerging technology markets. Syrah is also developing a downstream Battery Anode Material plant in Louisiana, USA.
Based in Shenzhen province, BTR is the world’s largest manufacturer and leader of technology development of battery anode materials for lithium-ion batteries. BTR supplies battery anode materials to the Chinese domestic market and export markets.