Australia-based Syrah Resources, through its subsidiary Syrah Technologies, has been awarded a tax credit of $165-million under the US Inflation Reduction Act’s (IRA's) Section 48C Qualifying Advanced Energy Project Tax Credit Programme.

The tax credit will aid the potential expansion of the company’s Vidalia active anode material (AAM) facility in Louisiana, boosting production capacity to 45 000 t/y.

The Section 48C tax credit programme, managed by the Internal Revenue Service with support from the US Department of Energy (DoE), aims to bolster critical materials processing and refining capacity in the US.

Syrah Technologies was selected for the tax credit from more than 350 applications submitted during the second $6-billion allocation round of the programme. The DoE recommended the Vidalia project due to its strategic importance in the US critical materials supply chain.

Syrah says the awarded tax credit will help fund the proposed expansion of the Vidalia facility, which is set to increase its production capacity to meet rising demand for active anode materials. These materials are crucial components in the production of lithium-ion batteries, essential for electric vehicles and renewable energy storage systems.

To claim the tax credit, Syrah Technologies must meet specific requirements outlined in the Internal Revenue Code, including compliance with prevailing wage and apprenticeship standards, certification of the expanded facility within two years, and commissioning the facility within the subsequent two years.

The company states that it is progressing with transition engineering, permitting, and long-lead procurement activities in anticipation of a final investment decision (FID) by its board of directors.

Syrah notes that commercial sales from its existing 11 250 t/y Vidalia facility and robust customer commitments will play a role in determining the timing of the FID.

The expansion of the Vidalia facility aligns with the US government’s broader goals of reducing reliance on imported critical minerals and advancing clean energy technologies.

The IRA has provided substantial incentives for projects that enhance the nation’s energy infrastructure, with $10-billion allocated to the Section 48C programme.