Syrah Resources (ASX: SYR) announced today two binding offtake agreements for natural graphite from its Balma operatio with Graphex and Westwater.
Syrah said both offtake agreements are for multi-year terms, with a market-based pricing mechanism and with options for escalating volumes from 2024 subject to achievement of project and operational milestones.
The company said the offtakes meet its goal of diversifying is customer base.
"USA and European demand for diversification of active anode material sourcing to mitigate geopolitical risk, reduce sole reliance on China, and achieve financial incentives from government policy programs is accelerating," wrote the company.
"To meet such demand there is a growing pipeline of ex-China merchant (non-integrated) natural graphite AAM facilities seeking long-term supply of ex-China natural graphite feed to underpin investment in capital intensive development. These AAM facility projects are in various stages of progress in the US, South Korea, Europe, Indonesia, India and Africa, and will result in greater demand for fines natural graphite in new markets in future years."
