Australian minerals and technology company Syrah Resources has signed a multi-year agreement with United States electric vehicle manufacturer Lucid. The contract covers the supply of natural graphite anode material from Syrahʼs production facility in Vidalia, USA. The Louisiana facility has an annual capacity of 11,250 tons of anode material and started production in the first quarter of 2024.
Deliveries to begin in early 2026
Syrah will supply a total of approximately 7,000 tons of anode material to Lucid or its battery suppliers over a three-year period. Deliveries are expected to commence in January 2026, subject to the material being qualified by Lucidʼs battery suppliers. Pricing for the anode material is said to be based on a variable mechanism that will be adjusted quarterly to an independent natural graphite flake price index.
Imports from China dominate the market
The agreement is terminable by either party if qualification of the material is not completed by the beginning of 2027 or if the material no longer meets the requirements of the US Inflation Reduction Act (IRA). According to Syrah, the market for anode material is currently heavily dependent on imports from China. Vidalia is said to be one of the few alternatives that is not classified as a Foreign Entity of Concern and therefore eligible for tax benefits under the IRA.
