A binding purchase agreement with South Korea's Posco Future M further confirms the move away from Chinese suppliers of battery metals, such as active anode material (AAM).

Posco Future M (formerly Posco Chemical) is an important battery materials company that produces cathode active materials and AAM.

AAM has been identified as a key ingredient in modern batteries for electric vehicles (EVs) and energy storage and Syrah says that recent measures by the Chinese and US governments have made it more attractive to source battery materials from outside China.

Natural graphite fines from Syrah's Balama operations in Mozambique are considered a globally important source for AAMs, with Posco Future M one of several companies interested in purchasing agreements.

Syrah's managing director, Shaun Verner, said that the agreement with Posco highlights his company's unique position in sourcing natural graphite and AAM outside of China.

It should be noted that Posco Future M is one of the largest AAM producers in the world and is planning to significantly increase its natural graphite AAM production capacity this decade.

"In addition, there is growing interest from battery manufacturers and automotive OEMs in directly contracting the sustainable supply of natural graphite ex-China to anode processing partners," said Verner.

(Caps Australia)