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Highlights:
- Syrah’s MoU with Ford and SK On will allow the company to ensure a smooth supply of its Anode Material Supply to BlueOval SK.
- BlueOval is a joint venture of Ford and SK On.
- Syrah shares opened in green today, followed by the release of this announcement.
Australian mining expert Syrah Resources Limited (ASX:SYR) has struck an agreement , non-binding memorandum of understanding (MoU) with Ford Motor Company and SK On., Ltd, it shared on 22 July 2022.
This MoU will allow Syrah to build an arrangement which includes the supply of graphite active anode material to the BlueOval SK joint venture, relating to Syrah’s vertically integrated Vidalia AAM facility in Louisiana, USA.
Meanwhile, the shares of Syrah opened trading in green today. At 12:57 AM AEST, Syrah shares were trading at AU$1.355 apiece, up 3.041%.
Details of Syrah’s Memorandum of Understanding:
As per Syrah’s announcement, Ford and SK would carry on with testing and validating the active anode material produced at Vidalia and apply commercially profitable methods to finalise by 31 December 2022. The MoU also puts Syrah and BlueOval Sk joint venture under a binding offtake agreement. As per this agreement, both the parties agree to expand production at Vidalia with an offtake commencement date of 2028.
BlueOval SK is a joint venture by Ford and SK On. SK On is a subsidiary of the South Korean petroleum business, SK Innovation. Ford is a Michigan-based designer, manufacturer, and seller of automobiles such as trucks, utility vehicles and cars.
Image source: © Maxxyustas | Megapixl.com
Ford and SK will be supplying lithium-ion batteries for Ford’s electric vehicle programs. On the other hand, the joint venture partners of BlueOval are focusing on establishing large-scale battery manufacturing facilities in Tennessee and Kentucky.
Syrah intends to establish Vidalia as an alternative to USA’s battery supply chain. The company is planning to construct an 11.25ktpa AAM facility and is expecting to complete it within the June 2023 quarter. Syrah aims to initiate the production in the September 2023 quarter.
Share price overview of Syrah on the ASX:
Syrah has managed to mark impressive gains on the ASX in last 12 months, gained more than 9% while on the Y-T-D basis, the stock has went down almost 30%.
