Syrah Resources Ltd (ASX:SYR) has signed a binding, conditional offtake agreement with NextSource Materials to supply natural graphite fines from its Balama operation in Mozambique.
The 7-year agreement, starting no earlier than June 1, covers aggregate volumes of about 34,000 to 68,000 tonnes. Pricing will be set quarterly at a premium to an independent graphite fines index, with adjustments for product grade and shipping.
Supply is contingent on the commencement of commercial production at NextSource’s planned anode material facility in Abu Dhabi, as well as downstream customer approval to use Balama-sourced graphite.
Syrah said the agreement supports Balama’s position as a supplier of natural graphite outside China, citing its track record in battery anode markets.