Syrah Resources, the Australian company operating the Balama graphite mine in Cabo Delgado province, northern Mozambique, has reported that production rose to 19,000 tonnes in the third quarter of 2026, up from 6,600 tonnes in the previous quarter. The company expects to make its first commercial sales of battery anode material in the United States before the end of the year.

According to the company’s quarterly activity report, cited by Lusa, graphite sales reached 18,000 tonnes in the period, more than double the 8,000 tonnes sold in the second quarter. Syrah described the quarter as one of strong operational performance, recording an 88% recovery rate and an average carbon grade of 95% in the concentrate produced.

The average realised selling price stood at US$583 per tonne, while the unit operating cost reached US$581 per tonne, reflecting a narrow margin in an international market under sustained price pressure. The company attributed part of these constraints to oversupply from China, which continues to weigh on global graphite demand and pricing.

In the United States, Syrah said it is continuing the gradual ramp-up of production at its Vidalia processing facility in the state of Louisiana, which uses graphite mined in Mozambique to manufacture active anode material for electric vehicle batteries.

The first commercial sales from Vidalia are expected in the fourth quarter of 2026, following the completion of customer qualification processes. The company regards this milestone as critical to securing new offtake contracts and underpinning the future expansion of the facility.

Syrah’s cash position stood at US$76 million at the end of September, including funds subject to restrictions tied to financing agreements with the International Development Finance Corporation (DFC) and the United States Department of Energy. During the quarter, the company also received an additional disbursement of US$15 million from the DFC.

The company is maintaining its target of raising annual production at Balama to between 200,000 and 240,000 tonnes, a goal announced in May, supported by the outlook for growth in the global battery industry.

“We regard the Mozambican mine as a strategic asset for the diversification of Western natural graphite supply, in a sector currently dominated by China. Operations in the country have generated a cumulative economic contribution of US$627 million, including US$4.4 million directed to community projects. Around 90% of the operation’s workforce is composed of Mozambican nationals,” the company stated.