Mozambique’s Balama mine will supply graphite for Lucid’s electric car batteries starting in 2026. The three-year agreement with Syrah involves 7,000 tons of anode material, establishing a vital supply link for Lucid’s advanced vehicles. The collaboration aims to enhance the production capabilities of both Lucid and Syrah while navigating current operational disruptions.
Graphite from the Balama mine in Mozambique will be utilized in the batteries of Lucid, a leading North American electric vehicle manufacturer, starting in 2026. This three-year supply agreement, orchestrated by Australian company Syrah, includes 7,000 tons of natural graphite active anode material to be delivered to Syrah’s Vidalia facility in the United States, highlighting a critical supply chain for electric vehicle batteries.
Syrah is committed to supporting Lucid’s mission of creating advanced electric vehicles with superior performance and efficiency. Their state-of-the-art production facility in Arizona manufactures the Lucid Air and the upcoming Lucid Gravity SUV. Beginning January 2026, the Vidalia plant will provide necessary battery materials to support these models and enhance their production capabilities.
Syrah asserts that the integration between the Vidalia factory and Balama mine presents a unique advantage in the global supply of natural graphite, an essential mineral for battery manufacturing. The company emphasizes that unlike other suppliers, this operation is crucial for fulfilling the growing demand in the North American market for EV batteries.
In recent developments, Syrah secured a $150 million loan from the U.S. International Development Finance Corporation to enhance the Balama mine and ensure sustainability. Although disruptions from protests have impacted operations, the company continues to engage with DFC and the U.S. Department of Energy to navigate these challenges.
Graphite production at Balama rose to 41,000 tons in Q1 2023, reflecting a positive trend in output as sales increase. Syrah has also established a facility in Vidalia to process this ore, sending two tons for testing last April. Mozambique aims to boost graphite production to over 329,040 tons by 2024, marking a significant increase thanks to enhanced mining efforts.
This anticipated growth in production poses critical implications for battery supply chains, as Mozambique produced only 120,000 tons in 2020, decreasing the following year but recovering in recent forecasts. Graphite is a vital component in the development of electric vehicle batteries, and increased output will aid in meeting the requirements of manufacturers like Lucid.
The collaboration between Syrah’s Balama mine and Lucid Motors underscores the importance of securing reliable graphite supplies for electric vehicle battery production. With increasing production targets set for Mozambique’s graphite, the region will play a crucial role in supporting North American electric vehicle markets in the coming years. Despite current operational challenges, plans for expansion remain steadfast, promising a robust future in battery materials supply.
Original Source: batteriesnews.com
