Mozambican Graphite to Supply Lucid Motors’ Electric Vehicle Batteries

Syrah Resources will supply 7,000 tons of graphite from Mozambique’s Balama mine for Lucid Motors’ electric car batteries starting in 2026. This three-year agreement aims to enhance supply chain efficiency for critical minerals in North America, while Mozambique anticipates a significant increase in graphite production in the coming years, moving from 120,000 tons in 2020 to over 329,000 tons in 2024.

Graphite mined from the Balama site in Mozambique will play a crucial role in powering Lucid Motors’ electric cars, with supplies starting in 2026. The Australian company Syrah Resources, which extracts the graphite, has inked a three-year contract to supply 7,000 tons of active anode material (AAM) to Lucid’s Vidalia facility in the U.S. This collaboration positions Syrah among a select few suppliers of critical minerals necessary for battery production in North America.

Syrah highlights that their vertical integration model, linking the Balama mine to the Vidalia factory, presents a unique advantage within the supply chain for battery materials. Lucid Motors, known for its cutting-edge electric vehicles, manufactures models such as the Lucid Air and the forthcoming Lucid Gravity SUV. The partnership reinforces the growing demand for high-quality battery materials as electric vehicle production expands globally.

The Vidalia factory, supported by graphite from Mozambique, signifies a significant step for both companies and the regions involved. Syrah has recently received a substantial loan from the International Development Finance Corporation (DFC) aimed at expanding the Balama facility and enhancing sustainability practices. However, production has faced disruptions due to protests, which have drawn the attention of all stakeholders involved.

Despite operational challenges, Balama’s output reached 41,000 tons of natural graphite in early 2023, showing a year-over-year increase. Mozambique is projected to produce over 329,000 tons of graphite in 2024, indicative of a growing capacity of over 180% compared to prior years. The region’s rich mineral resources position it as an essential supplier for electric vehicle battery production worldwide.

The partnership between Syrah and Lucid Motors marks a significant development in the electric vehicle industry. Mozambican graphite is set to become a key component in Lucid’s battery manufacturing, bolstering both companies’ positions in the market. Despite recent operational challenges at Balama, the expected increase in graphite production underscores Mozambique’s critical role in meeting the growing demand for electric vehicle batteries.

Original Source: batteriesnews.com