Tesla enters into a deal with Syrah Resources for the supply of natural graphite active anode material (AAM). During the first four years, the company will receive material at a fixed price with the possibility of purchasing additional volume if Syrah has it available.
Tesla has signed a supply agreement with Syrah Resources to supply natural graphite active anode material (AAM) from its manufacturing facility in Vidalia, Louisiana, USA. The natural graphite concentrate is transported from the graphite manufacturing plant in Balam in Mozambique to Vidalia where it is shaped into a sphere and refined to form an active anode precursor material. It is then coated and heat tread to produce an AAM.
Under the agreement, Tesla will receive most of the material that will be produced as part of the proposed expansion of AAM's manufacturing facility in Vidalia for an initial period of four years at a fixed price. If Syrah expands its production capacity to over 10,000 tons per year, Tesla could gain additional volume.
“The agreement provides a compelling foundation to proceed with the initial expansion of Vidalia’s production capacity and Syrah plans to make a final investment decision for construction of this expanded facility in January 2022, subject to financing commitments,” the company said in a statement.
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