Syrah Resources (ASX: SYR) has signed a binding offtake agreement for graphite and AAM supply to leading South Korea battery maker Posco Future M.
Syrah managing director Shaun Verner said the Posco deal highlights his company’s unique position in having natural graphite and AAM supply outside of China.
He said Posco Future M is one of the largest AAM producers globally and is planning to significantly increase its natural graphite AAM production capacity this decade.
“Furthermore, there is increasing interest from battery manufacturers and auto OEMs in directly contracting sustainable upstream supply of ex-China natural graphite for anode processing partners,” Mr Verner said.
This has become more urgent following the decision of China’s Ministry of Commerce (MOFCOM) and General Administration of Customs (GACC) to implement export controls for designated “dual-use” graphite products used in commercial and defense applications, including for batteries, citing safeguarding of natural security and interests on 1 December 2023.
The offtake agreement with Posco is for up to 2kt per month (24kt) in the year following commissioning, and from 2kt per month (24kt per annum) to 5kt per month (60kt per annum) at the option of Posco Future M with at least six months’ notice, from the second year to the end of the Term.
The agreement is for six years commencing upon notification from Posco Future M.
Posco Future M (previously Posco Chemical) is a major battery materials business, producing cathode active materials and AAM.
