Syrah Resources Limited (ASX:SYR) has entered into a non-binding memorandum of understanding (MOU) with Ford Motor Company and SK On Ltd to evaluate a strategic arrangement, including natural graphite active anode material (AAM) supply to the BlueOval SK joint venture, relating to Syrah’s vertically integrated Vidalia AAM facility in Louisiana, USA.
BlueOval SK is a joint venture between Ford and SK On., a subsidiary of South Korea-based SK Innovation, that will supply lithium-ion batteries for Ford’s electric vehicle programmes, including for a future full-size EV pickup truck. Through the BlueOval SK joint venture, Ford and SK On are jointly developing large-scale battery manufacturing facilities in Tennessee and Kentucky in the USA.
Under the MOU, Syrah, Ford and SK On will continue testing and qualifying Vidalia AAM and use commercially reasonable efforts to finalise, by no later than December 31, 2022, a binding offtake agreement between Syrah and the BlueOval SK joint venture for AAM from an expanded production facility at Vidalia and with an offtake commencement date of no later than 2028.
Syrah is developing Vidalia as a vertically integrated natural graphite AAM supply alternative for USA battery supply chains with construction of a 11.25ktpa AAM facility expected to be completed in the June 2023 quarter and start of production targeted in the September 2023 quarter.
About Syrah Resources
Syrah Resources (ASX code: SYR) is an Australian Securities Exchange listed industrial minerals and technology company with its flagship Balama Graphite Operation in Mozambique and a downstream Active Anode Material Facility in the United States. Syrah’s vision is to be the world’s leading supplier of superior quality graphite and anode material products, working closely with customers and the supply chain to add value in battery and industrial markets.
About Ford Motor Company
Ford Motor Company (NYSE: F) is a global company based in Dearborn, Michigan. The company designs, manufactures, markets and services a full line of Ford trucks, utility vehicles, and cars – increasingly including electrified versions – and Lincoln luxury vehicles; provides financial services through Ford Motor Credit Company; and is pursuing leadership positions in electrification; mobility solutions, including self-driving services; and connected vehicle services. Ford employs approximately 186,000 people worldwide.
About SK On., Ltd.
SK On., Ltd, is a wholly-owned subsidiary and the battery business of SK Innovation Co., Ltd. It is one the world’s largest battery manufacturers owning a global battery supply network centred on production bases in key markets, such as North America, Europe, and Asia. Established as South Korea’s first oil refining company in 1962, SK Innovation engages in diverse areas of business, including exploration and production, batteries, and information and electronics materials. It also owns SK Energy, South Korea’s No. 1 refining company; SK Global Chemical, the leader in the domestic petrochemical industry; SK Lubricants, a global lubricants company; SK Incheon Petrochem, a refining and chemical company; SK Trading International, a trader of crude oils and petrochemicals; and SK IE Technology, a global information and electronic material solution company.