Syrah aiming for integrated battery anode business

Sydney-based Syrah Resources is leveraging its Balama graphite project in Mozambique to develop an integrated battery anode materials and industrial products business.

The company operates the world's largest natural graphite mine, which last year produced 104,200t and is aiming to increase output to around 250,000t in 2019.

Demand for natural graphite is in a growth phase to support global decarbonisation efforts and manufacturing of lithium-ion batteries. Graphite is the main ingredient in the anodes of lithium-ion batteries.

"The natural graphite market is in a phase of disruptions as Syrah ramps up production. This is causing structural market adjustments. China is now a net importer through international major demand for Syrah's material," managing director Shaun Verner told the Bernstein Strategic Decisions conference in London.

Production of spherical and anode material outside of China is seen as strategically important, he added, saying that the electric vehicle supply chain requires complementary supply sources for product security.

For the production of battery-grade anode material, there are major environmental and cost advantages from starting with higher-grade graphite fines products from mines such as Balama and those still under development in Tanzania by other companies.

Syrah's Vidalia battery anode materials plant in the US state of Louisiana is regarded as key for market progression, qualification, and product and strategic partnership development.

Precursor testing was completed at the plant in May 2018 followed by a commercial-scale study in September. Initial production of unpurified spherical graphite from Balama natural graphite concentrate was achieved in December 2018.

The commissioning of a purification circuit is now underway, with samples expected to be sent to prospective customers later this year.

"Until recently, uncoated and purified natural spherical graphite supply was entirely Chinese – Syrah could provide an alternative source of supply," Verner said.

Several Australian companies are at varying stages of developing graphite projects in Tanzania, while graphite projects are also being developed by other companies in Madagascar and Mozambique to meet rising global demand and reduce reliance on China.