Australia’s Syrah to Supply Graphite for South Korea’s LGES
- October 20, 2022
- Posted by: Quatro Strategies
- Category: Mining
Australian miner Syrah Resources announced on Thursday that it will evaluate supplying graphite, the key anode material in Li-Ion batteries, to South Korean battery maker LG Energy Solution (LGES). The two companies will work to finalize a binding offtake agreement by Dec. 31 for 2 kilotonnnes per annum (ktpa) of graphite active anode material (AAM) from 2025, and increase it to at least 10 ktpa after its production capacity is expanded to 45 ktpa at its Vidalia facility in Louisiana, United States.
Automakers and battery manufacturers have been racing to secure supplies of battery materials used in electric vehicles (EVs) amid an acceleration of global efforts for energy transition.
Syrah also said its unit has been selected for a grant of up to $220 million by the U.S. Department of Energy, which will be used to finance the potential expansion of the Vidalia AAM facility.
The company added that it was developing Vidalia as a natural graphite AAM supply alternative for U.S. battery supply chains, with production targeted to start in Fall 2023.
LGES had also made cobalt and lithium supply deals last month with three Canadian miners. It also signed a deal with Lithium Australia’s unit to process at least 250 tonnes of its lithium-ion batteries over the next year.
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