Syrah inks long-term Balama graphite offtake with NextSource for Abu Dhabi anode plant

An update from Syrah Resources ( (AU:SYR) ) is now available.

Syrah Resources has signed a multi-year binding conditional offtake agreement with NextSource Materials for the supply of 34,000 to 68,000 tonnes of natural graphite fines from its Balama mine in Mozambique over a seven-year term. The deal, priced at a premium to an independent index and contingent on NextSource’s Abu Dhabi anode facility reaching commercial production and downstream approval, underscores Balama’s strategic role in securing ex-China graphite supply for battery anode manufacturing and supports the build-out of a new anode materials hub in the UAE targeting Japanese customers.

NextSource, which owns the Molo graphite mine in Madagascar, is prioritising development of a large-scale anode material facility in Abu Dhabi, where it has secured a site, signed an offtake with a Japanese downstream customer and is progressing towards a final investment decision backed by strategic funding term sheets. The Syrah agreement strengthens the emerging Middle East battery materials value chain, potentially diversifies supply away from China for key customers, and provides Syrah with an additional long-term sales channel subject to project milestones being met, although both parties retain termination rights if conditions are not satisfied within specified timeframes.

The most recent analyst rating on (AU:SYR) stock is a Hold with a A$0.23 price target. To see the full list of analyst forecasts on Syrah Resources stock, see the AU:SYR Stock Forecast page.

More about Syrah Resources

Syrah Resources is an Australian-listed battery materials company focused on natural graphite production from its Balama Graphite Operations in Mozambique. The company positions Balama as a major high-quality, large-volume supplier of natural graphite to ex-China battery anode markets, targeting the growing global electric vehicle and energy storage supply chains.

YTD Price Performance: -29.85%

Average Trading Volume: 4,945,419

Technical Sentiment Signal: Sell

Current Market Cap: A$308.2M

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