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| Syrah Balama |
Syrah Balama graphite recovery gained momentum after months of unrest in Mozambique. The mine produced 6,500t in April–June. Syrah Balama graphite recovery hit 23,000 t/month in late June with a 74% recovery rate. As a result, Syrah Balama graphite recovery strengthens supply visibility for battery customers.
Production restarts and ramp-up
Syrah restarted Balama for two weeks from 16–30 June. The team lifted run-rate output to 23,000 t/month, equal to 276,000 t/yr. However, earlier protests blocked site access from September 2024 to May 2025. Local agreements with farmers and authorities enabled a safe return.
Offtake commitments and AAM progress
Syrah advanced active anode material at its Vidalia plant in Louisiana. The 11,250 t/yr facility continues product qualification with US customers. Meanwhile, Syrah extended Tesla’s 8,000 t/yr AAM qualification deadline to 9 February 2026. Tesla may exit if Syrah misses the revised date. Syrah is also qualifying material for Lucid under a 7,000t offtake.
Financial and operational context
Syrah declared force majeure on Balama shipments in December 2024. The company missed several deliveries in the first quarter. It triggered events of default on a US government loan, but secured a waiver. Inventory drew down over the period as the mine stood idle. The prior production run occurred in April–June 2024 at 23,500t before demand weakened.
The Metalnomist Commentary
Balama’s rapid restart shows robust plant capability and cost discipline. Yet AAM qualification timelines will drive cash flow more than mine tonnage. Watch US tariff policy, automotive demand, and Vidalia ramp milestones for pricing signals in graphite and anode markets.
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