Syrah Resources (ASX: SYR) has signed a significant six-year offtake agreement with Posco Future M (KRX: 003670), a leading South Korean battery materials company, for the supply of natural graphite fines from its Balama operations in Mozambique. This strategic deal marks a major step forward for Syrah in diversifying its customer base and solidifying its position as a key player in the global battery materials supply chain.

“This binding offtake agreement with Posco Future M is a significant development for Syrah,” said Shaun Verner, Managing Director of Syrah Resources. “It highlights the increasing demand for high-quality, ethically sourced natural graphite outside of China, and reinforces Balama’s position as a leading supplier to the growing electric vehicle and energy storage markets.”

The agreement outlines the supply of up to 2,000 tonnes of natural graphite fines per month in the first year following commissioning, with the option for Posco Future M to increase the volume to 5,000 tonnes per month from the second year onwards. The pricing will be determined through quarterly negotiations based on market indices and product specifications.

“We are excited to partner with Syrah to secure a reliable and sustainable source of natural graphite for our anode material production,” said a spokesperson for Posco Future M. “Balama’s high-quality graphite and Syrah’s commitment to responsible mining practices align perfectly with our own sustainability goals.”


The deal comes amidst growing concerns about the dominance of China in the battery materials supply chain. Recent policy shifts by both the Chinese and US governments have further fueled the need for diversification, creating opportunities for companies like Syrah with ethically sourced, high-quality graphite resources outside of China.

Syrah’s Balama operation is considered one of the world’s largest and highest-grade natural graphite deposits. The company is currently ramping up production at the mine and is expected to reach full capacity later this year. This offtake agreement with Posco Future M is a major vote of confidence in Syrah’s operations and its future growth prospects.

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