Syrah Resources signs offtake deal for Balama project in Mozambique


Syrah Resources has signed an agreement to sell graphite from the Balama operation in Mozambique to Chinese battery anode manufacturer Shenzhen BTR New Energy Materials’ (BTR) subsidiary Jixi BTR Graphite Industrial.

Under the agreement, Syrah will offer 30,000t of graphite in the first year of production.

Meanwhile, Syrah and BTR will work towards the implementation of other aspects of the previously signed memorandum of agreement (MoU), including potential supply chain cooperation. 

Syrah Resources 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.

"In confirming this binding sales agreement with the world’s largest battery anode manufacturer, Syrah will enter the leading geographic market for natural graphite with confidence and capitalise on the significant forecast growth in electric vehicle and energy storage markets.

"Syrah will capitalise on the significant forecast growth in electric vehicle and energy storage markets."

"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."

BTR is engaged in technology development of battery anode materials for lithium-ion batteries.

Located in the Cabo Delgado province of northern Mozambique, the Balama project is around 200km west of the port town of Pemba.

Commissioning activities at the project began in May this year, and construction is close to completion.

The project has a combined proven and probable reserve of 81.4 metric tonnes (Mt), with contained graphite of 13.2Mt.

The agreement's financial terms have not been disclosed.