Syrah Resources delivered a record quarter with a 34% rise in natural graphite production and advancing anode material qualification at its Vidalia facility, while navigating evolving US trade policies that could reshape its market dynamics.
- 34kt natural graphite production at Balama, up 34% quarter-on-quarter
- 29kt graphite sales at US$577/tonne average price, with strong ex-China demand
- Vidalia AAM facility progressing customer qualification, limited production for testing
- US antidumping and countervailing duties on Chinese graphite AAM pending final determination
- Syrah exploring partnerships and loan restructuring to strengthen financial position
Operational Momentum at Balama
Syrah Resources has reported a robust operational quarter ending December 2025, with its Balama Graphite Operation in Mozambique producing 34,400 tonnes of natural graphite, a 34% increase from the previous quarter. This surge was driven by improved recovery rates and sustained high product quality, positioning Balama to maintain production momentum into 2026. The company is operating in campaign mode, targeting at least 30,000 tonnes in the March quarter, with potential to ramp up capacity as demand grows.
Sales Growth and Market Dynamics
Natural graphite sales to third-party customers reached 29,000 tonnes, up 21% quarter-on-quarter, at a weighted average price of US$577 per tonne (CIF). Syrah successfully completed large-volume breakbulk shipments to Indonesia, supporting ex-China active anode material (AAM) production, alongside container shipments to other international markets. The ex-China coarse flake graphite market remains strong, with prices exceeding US$1,100 per tonne, reflecting supply chain disruptions and geopolitical shifts that favour Syrah’s non-Chinese supply sources.
Vidalia Facility – Qualification Progress Amid Policy Tailwinds
At the Vidalia AAM facility in the United States, Syrah continues to focus on customer qualification processes, producing limited volumes strictly for testing. Offtake agreements with Tesla and Lucid underpin the facility’s 11,250 tonnes per annum capacity, but commercial sales commencement depends on successful qualification and evolving US policy support. The company is optimistic that impending US antidumping and countervailing duties on Chinese graphite AAM imports, expected in the March quarter, will enhance Vidalia’s competitive position and accelerate demand for ex-China sourced materials.
Financial Position and Strategic Initiatives
Syrah ended the quarter with a cash balance of US$77 million, including restricted funds earmarked for Balama and Vidalia operations. The company is actively exploring partnering, investment, and loan restructuring options to bolster its strategic and capital positions amid challenging market conditions. Syrah’s subsidiary has secured significant US government tax credits under the Inflation Reduction Act, supporting the planned expansion of Vidalia’s AAM capacity to 45,000 tonnes per annum, with a final investment decision anticipated by mid-2026.
Navigating Regulatory and Market Headwinds
The backdrop of US trade investigations and Chinese export controls continues to shape Syrah’s market environment. Preliminary US duties on Chinese graphite AAM imports exceed 100%, aiming to curb unfair competition and subsidised supply. Meanwhile, Chinese export restrictions on graphite and battery materials exacerbate supply chain instability outside China, driving demand for Syrah’s products. The company also highlighted ongoing challenges from synthetic graphite overcapacity in China, which depresses prices and margins in the domestic market.
Governance and ESG Commitments
Syrah announced the appointment of Samantha Hogg as an independent non-executive director and incoming chair, signaling a governance refresh. The company continues to advance environmental, social, and governance initiatives, including responsible mining certifications and lifecycle assessments, aiming to differentiate its products from Chinese competitors on sustainability grounds.
Bottom Line?
As Syrah navigates evolving US trade policies and advances Vidalia’s qualification, the coming months will be critical in defining its role in the shifting global graphite and battery materials landscape.
Questions in the middle?
- When will the US International Trade Commission finalize antidumping and countervailing duties on Chinese graphite AAM?
- How quickly can Vidalia ramp up commercial production following customer qualification?
- What outcomes will Syrah’s partnering and loan restructuring efforts yield for its financial resilience?