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Business others tesla signs deal with Syrah Resources for graphite

Tesla signs deal with Syrah Resources for graphite


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Tesla signs deal with Syrah Resources for graphite

Tesla Inc. looks towards Australian Syrah Resources’ Mozambique mine for a critical component in its electric car batteries in what analysts believe to be the first of its kind deal designed to reduce its dependence on China for graphite.

Elon Musk’s Tesla signed a deal last month with Australia’s Syrah Resources, which operates one of the largest graphite mines in the world in Mozambique. The unique partnership between an electric vehicle (EV) maker and a mineral producer is critical for lithium-ion batteries. The value of the deal is still unannounced.

Tesla Inc. will purchase the material from Syrah’s processing plant in Vidalia, Lousiana, which sources the graphite from the company’s mine in Balama, Mozambique. The EV maker intends to buy upto 80% of what the plant produces, nearly 8,000 tons of graphite per year, beginning from 2025. According to the agreement, Syrah Resources must prove the material meets Tesla’s quality.

Simon Moores of the UK-based battery materials data and intelligence provider, Benchmark MInerla Intelligence, said that the agreement is part of Tesla’s strategy to ramp up its capacity to make its own batteries and reduce its dependence on China, which dominates the global graphite markets.

Syrah Resources’ graphite mine in the South African nation of Mozambique’s northernmost province, Cabo Delgado, is one of the largest in the world. The mine boasts the ability to produce 350,000 tons of flake graphite a year.


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