Syrah Resources resumed graphite production at its Balama mine and advanced its Vidalia anode material facility amid supportive US trade tariffs and tax credits, positioning itself strongly in the growing EV battery market.
- Balama graphite production restarted with 26kt output and improved recovery rates
- Cashflow from operations rose to US$87 million in Q3 2025
- Vidalia AAM facility progressing with strategic partnerships and tax credit qualification
- US import tariffs on Chinese graphite products enhance Vidalia’s competitive edge
- Strong ESG credentials and community investment underpin sustainable growth
Balama Mine Resumes Production
Syrah Resources marked a significant operational milestone in Q3 2025 by restarting production at its flagship Balama graphite mine in Mozambique. The mine delivered 26,000 tonnes of natural graphite with a recovery rate of 68% and a high-grade concentrate of 95%. This restart follows a period of operational challenges and positions Balama to better meet growing global demand for natural graphite, a critical component in electric vehicle (EV) batteries.
Financial Performance and Cashflow Improvement
Financially, Syrah reported a substantial improvement with cashflow from operations reaching US$87 million, a marked turnaround from a US$21 million loss in the prior quarter. This was supported by increased product sales and the benefit of the US Section 45X tax credit, which incentivizes domestic sourcing of battery materials. The company’s cash balance also strengthened, providing a solid foundation for ongoing investments.
Vidalia Facility and Strategic US Positioning
Syrah’s Vidalia anode active material (AAM) facility in the United States remains central to its downstream strategy. The company is progressing qualification with Tier 1 battery customers and exploring partnership and investment options to expand Vidalia’s production capacity from 11.25ktpa to a targeted 45ktpa by 2029. This expansion is critical as US battery manufacturers seek reliable, non-Chinese sources of graphite to qualify for lucrative 45X tax credits.
Favorable US Trade Policies Bolster Competitive Advantage
The US government’s imposition of countervailing and antidumping duties on Chinese graphite AAM products, alongside other tariffs, has created a more favorable market environment for Syrah’s US-based operations. These trade measures, coupled with China’s ongoing export controls on graphite materials, have constrained Chinese supply to the US, enhancing demand for Syrah’s ex-China graphite products. This dynamic supports Vidalia’s growth prospects and the company’s strategic pivot towards serving the North American EV battery supply chain.
Commitment to ESG and Community Development
Syrah continues to emphasize sustainability and social responsibility, achieving leading ESG certifications including IRMA 50 for its Balama operation. The company invested US$4.3 million in community development and graduated nearly 500 community members from its professional training centre in Mozambique. These efforts reinforce Syrah’s commitment to operating responsibly while supporting local economies.
Looking Ahead
Syrah outlined key upcoming milestones including final investment decisions on Vidalia’s expansion and securing strategic partnerships to underpin growth. With global EV adoption accelerating and supply chain diversification becoming a priority, Syrah’s vertically integrated model and US positioning could unlock significant shareholder value in the coming years.
Bottom Line?
Syrah’s operational rebound and strategic US foothold position it well to capitalize on shifting global graphite supply dynamics and EV battery demand.
Questions in the middle?
- How will final US trade rulings on Chinese graphite tariffs impact Syrah’s market share?
- What timeline and scale can investors expect for Vidalia’s planned capacity expansion?
- How resilient is Syrah’s supply chain amid geopolitical tensions and export controls?