Syrah Reports US$66m Cash, Balama Pause, and Vidalia AAM Ramp-Up in Q1 2025

Balama Production Pause and Path Forward

Syrah Resources’ Q1 2025 report reveals a temporary halt in operations at its flagship Balama graphite mine in Mozambique, driven by local protest actions. Despite this, the company is actively engaging with government and community stakeholders to resolve issues, aiming to resume production and shipments before the end of Q2 2025. A significant milestone was the signing of a resettlement compensation agreement with farmers and the Mozambican government, signaling strong local support for restarting operations.

Vidalia Facility: The Downstream Growth Engine

Meanwhile, Syrah’s Vidalia facility in Louisiana, USA, continues its ramp-up of natural graphite active anode material (AAM) production, currently operating at 11.25ktpa. The facility’s product quality consistently meets stringent lithium-ion battery specifications, with purity levels above 99.95%. Vidalia’s expansion to 45ktpa capacity is poised to unlock significant value but remains contingent on securing sales and customer financing. Binding offtake agreements with major customers including Lucid and Tesla underpin this growth trajectory, supported by a US$165 million tax credit awarded under the Inflation Reduction Act (IRA).

Market Dynamics and Trade Policy Challenges

The report highlights a complex market environment shaped by robust global electric vehicle (EV) sales growth, up 36% year-on-year in Q1 2025, and intensifying US trade measures. The US Department of Commerce and International Trade Commission have initiated antidumping and countervailing duty investigations on Chinese graphite imports, with preliminary duties expected by mid-2025. These tariffs, alongside China’s tightening export controls on critical minerals, are reshaping supply chains and creating opportunities for ex-China suppliers like Syrah. However, competition from subsidised synthetic graphite producers and evolving US policy on critical minerals add layers of uncertainty.

Financial Position and Operational Costs

Syrah closed Q1 2025 with a healthy cash balance of US$66 million, including restricted funds earmarked for Balama and Vidalia operations. The company’s cost guidance for Balama production remains competitive, with C1 costs estimated between US$350-480 per tonne FOB Mozambique depending on production scale. Capital expenditure continues to support Vidalia’s expansion and operational readiness, while repayments and financing costs are managed prudently amid the current market backdrop.

ESG Leadership and Sustainability Credentials

Syrah underscores its commitment to environmental, social, and governance (ESG) principles, boasting ISO certifications (ISO 45001, 14001, 9001) at Balama and Vidalia. The company has achieved a 50-level rating under the Initiative for Responsible Mining Assurance (IRMA) and completed an independent life cycle assessment confirming a low carbon footprint relative to Chinese graphite supply routes. Syrah’s integrated supply chain offers full traceability from mine to customer, aligning with global sustainability frameworks such as the Global Reporting Initiative (GRI) and United Nations Sustainable Development Goals (SDGs).

Strategic Outlook

Syrah’s vertically integrated model, combining the world-class Balama resource with downstream processing at Vidalia, positions it as a leading ex-China natural graphite and AAM supplier. The company’s focus on expanding ex-China supply aligns with growing global demand for battery materials driven by EV adoption. While near-term operational and market challenges persist, Syrah’s binding offtake agreements, government incentives, and ESG credentials provide a strong foundation for sustainable growth.