Australian company Syrah Resources almost tripled graphite production at its Balama mine in Mozambique in the third quarter, to 19,000 tonnes, and expects to make its first sales of the material for electric car batteries in the United States later this year.
According to the company’s quarterly activities report released today, natural graphite production at Balama, in Cabo Delgado province, northern Mozambique, increased from 6,600 tonnes between April and June, while sales reached 18,000 tonnes, more than double the 8,000 tonnes recorded in the previous quarter.
The company described the period as one of “strong operational performance”, highlighting a recovery rate of 88% and an average carbon content of 95% in the concentrate produced.
Syrah also reported that the average selling price of graphite was US$583 (€510) per tonne, while the unit operating cost stood at US$581 (€508) per tonne.
Despite the operational recovery, the company noted that the international market remains constrained by excess supply from China, putting pressure on prices and demand outside that country.
“Policy support remains crucial for the development and diversification of natural graphite and anode material supply chains outside China,” the group said, adding that customers remain focused on “security of supply, sustainability and resilient supply chains”.
In the same report, the company highlighted progress at its anode materials facility in Vidalia, in the US state of Louisiana, which uses graphite extracted in Mozambique to produce components for electric vehicle batteries.
“The gradual ramp-up of commercial production at Vidalia continues, and the first commercial sales are expected following completion of customer qualification processes, scheduled for the fourth quarter of 2026,” the report stated.
Syrah considers the start of commercial sales at Vidalia a decisive step towards securing new contracts and supporting the facility’s future expansion.
The company’s cash position stood at US$76 million (around €66 million) at the end of September, including funds subject to restrictions associated with financing from the International Development Finance Corporation (DFC) and the US Department of Energy.
During the quarter, the company also received an additional US$15 million (€13 million) disbursement from the DFC.
The company reiterated its target, announced in May, of increasing annual production at the Balama mine to between 200,000 and 240,000 tonnes, citing growth in the global battery industry as the main driver of future demand.
In its quarterly update, Syrah again described Balama as a strategic asset for Western supply chains, arguing that it is the leading high-quality natural graphite operation outside China.
The company added that its operations in Mozambique had generated a cumulative economic contribution of US$627 million (€548 million), including US$4.4 million (€3.8 million) invested in community projects, while maintaining a workforce nationalisation rate of around 90%.
In the first half of 2026, Syrah had produced 25,800 tonnes of graphite at Balama, almost four times the amount produced in the same period of the previous year, and sold 26,600 tonnes.
