Syrah Technologies bags DOE loan for expansion of its Active Anode Materials facility
Syrah Resources Limited has announced its entry into a binding documentation for a loan facility up to $ 102 million from the US Department of Energy to Syrah Technologies, LLC to support the financing of the initial expansion of its Vidalia active anode material (AAM) facility in Louisiana.
Finalisation of the binding loan follows a conditional commitment through the Advanced Technology Vehicles Manufacturing (ATVM) program from DOE in April 2021. The company will be expanding its graphite-based AAM capacity to 11.25 ktpa, an essential ingredient in lithium-ion batteries.
Speaking on the development, Managing Director and CEO of Syrah Technologies Shaun Verner said, "This highlights Vidalia's strategic position in the USA. It provides strong validation of Syrah, Vidalia and the Vidalia Initial Expansion. Importantly, the loan will allow Syrah to accelerate its growth strategy in its downstream business and support the rapidly growing EV and battery supply chain in the USA".
DOE's AVTM loan program has $15.1 billion in uncommitted loan authority to support the manufacture of eligible advanced technology vehicles including EVs, and qualifying components and materials, in the USA. The loan to Syrah Technologies is the first from the program since 2011, and the first ever from the ATVM loan program to a materials processing facility.
U.S. Secretary of Energy Jennifer M. Granholm said, "Securing critical materials, such as lithium and graphite, is essential to increasing domestic production of batteries to power the growing number of EVs on our roadways. DOE's investment in the Vidalia Initial Expansion builds on President Biden's goals to secure our clean transportation future and grow the United States' electric vehicle and advanced battery manufacturing workforce".
The company claims that the loan, together with the proceeds from its earlier equity raising, are sufficient to fully fund the capital costs of the Vidalia Initial Expansion project. With advances commencing from the DOE loan, Syrah will use surplus proceeds from the equity raising for a definitive feasibility study (DFS) on the further expansion of Vidalia's production capacity to at least 45ktpa AAM, it adds.