Syrah Resources (ASX:SYR) has signed an offtake agreement with NextSource Materials (TSX:NEXT) for natural graphite sourced from Syrah’s Balama Graphite Operation in Mozambique.
The agreement sees Syrah providing NextSource with between 34,000 and 68,000 tonnes of natural graphite over a seven-year term, beginning from 1 June 2026.
The price will be determined quarterly as a premium to the price index for natural graphite fines, subject to commercial production at NextSource’s anode facility in Abu Dhabi.
Syrah will be eligible to terminate the agreement if conditions have not been reached by 31 December 2026, while NextSource will be eligible to terminate the agreement if conditions have not been reached by 31 December 2027.
Syrah says the agreement highlights the project’s position as a “major supplier of high-quality, large-volume natural graphite outside of China”.
According to Natural Resources Canada, global graphite consumption reached 5.7 million tonnes in 2024, up from 5.2 million tonnes in 2023.
North America accounted for 3.8% of the world’s consumption of natural graphite, while 84.5% of graphite consumption came from Asia, equivalent to 1.7 million tonnes.
In 2024, China produced 79.4% of the world’s graphite source through 1.27 million tonnes.
Based in Toronto, Canada, NextSource Materials is a battery materials company that owns the Molo Graphite Mine in Madagascar and is focused on developing its anode material facility in the Middle East.
Syrah Resources is an industrial minerals and technology company that owns the Balama Graphite Operation in Mozambique and the Active Anode Material Facility in the US.
The company is focused on becoming a leading supplier of graphite and anode material products for international battery and industrial markets.
Write to Maddison Elliott at Mining.com.au
Images: Syrah Resources
