Name of the Project
Vidalia further expansion project.

Location
Louisiana, in the US.

Project Owner/s
Vertically integrated natural graphite and battery anode company, Syrah Resources.

Project Description
A definitive feasibility study has confirmed that the expansion of Vidalia’s capacity to 45 000 t/y of active anode material (AAM) is technically viable and financially robust, with processed graphite estimated at 74 600 t/y.

The AAM facility will have the flexibility to produce an additional AAM product with differentiated electrochemical performance parameters, adding to the product the company will produce from the 11 250 t/y AAM Vidalia facility under construction, or the Vidalia initial expansion project.

Potential Job Creation
Syrah resources reported in January 2024 that the operations team is fully staffed, with more than 100 people engaged in the commissioning process, and ready to ramp up production at Vidalia.

Net Present Value/Internal Rate of Return
The project has an estimated pretax net present value, at 10% discount rate, of between $208-million and $794-million, and an internal rate of return of between 13.9% and 22.9%, with a payback of four to six years from the start of operations.

Capital Expenditure
Total cost has been increased to $209-million, an increase of about 5% when compared with the previous total installed capital guidance of $198-million, and about 19% more than the cost estimate in the final investment decision.

Syrah explained in January 2024 that the escalation was the result of unplanned indirect costs on equipment acquisitions and additional commissioning costs.

Syrah partly funded the Vidalia expansion project with a $102-million loan from the US Department of Energy and has applied for an additional $350-million to support the further expansion of the plant. 

Planned Start/End Date
Not stated.

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

The 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 because of 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 AAMs. 

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 has stated 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.

Commercial sales from Syrah’s 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.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Syrah Resources, tel +61 3 9670 7264 or email enquiries@syrahresources.com.au.