Syrah Resources Secures $165 Million IRA Tax Credit for Expansion

Syrah Resources, an Australian graphite producer, has secured a significant $165 million tax credit. This credit comes from the US Inflation Reduction Act (IRA). Specifically, it targets the potential expansion of their active anode material (AAM) plant. The tax credit will support a major capacity increase.

Syrah Technologies, a wholly-owned subsidiary, received the credit. The US Internal Revenue Service (IRS) granted it. It falls under the IRA Section 48C Qualifying Advanced Energy Project Tax Credit Program. This funding will enable the potential expansion of the Vidalia AAM facility.

Vidalia Facility Expansion Plans

Currently, the Vidalia AAM facility in Louisiana has a capacity of 11,250 metric tonnes per year. The company aims to increase this to 45,000 metric tonnes per year. This expansion will significantly boost production. The Vidalia facility processes natural graphite. This graphite comes from Syrah’s Balama graphite operation in Mozambique.

SuperMetalPrice reports this development will impact the graphite market. Moreover, this expansion strengthens the US supply chain for battery materials. Consequently, it promotes domestic production. Therefore, it reduces reliance on foreign sources.