Australia-based Syrah Resources, through its subsidiary Syrah Technologies, has been awarded a $165 million tax credit under the US Inflation Reduction Act’s (IRA) Section 48C Qualifying Advanced Energy Project Tax Credit Program.
The tax credit will support the potential expansion of Syrah’s Vidalia Active Anode Material (AAM) facility in Louisiana, increasing its production capacity to 45,000 tonnes per year (t/y).
The Section 48C tax credit program, managed by the Internal Revenue Service with support from the US Department of Energy (DoE), aims to strengthen critical materials processing and refining capacity in the United States.
Syrah Technologies was selected for the tax credit from more than 350 applications submitted during the second $6 billion allocation round of the program.
The DoE recommended the Vidalia project due to its strategic importance in bolstering the US critical materials supply chain.
The awarded tax credit will help fund the proposed expansion of the Vidalia facility, which is set to increase its production capacity to meet growing demand for Active Anode Materials.
These materials are essential components in lithium-ion batteries used in electric vehicles and renewable energy storage systems.
To claim the tax credit, Syrah Technologies must meet specific requirements outlined in the Internal Revenue Code.
These include compliance with prevailing wage and apprenticeship standards, certification of the expanded facility within two years, and commissioning the facility within the following two years.
Syrah reports progress in transition engineering, permitting, and long-lead procurement activities in anticipation of a final investment decision (FID) by its board of directors.
Commercial sales from its existing 11,250 t/y Vidalia facility, along with strong customer commitments, will influence the timing of the FID.
The Vidalia facility expansion aligns with the US government’s broader goals to reduce dependence on imported critical minerals and advance clean energy technologies.
The IRA has allocated $10 billion to the Section 48C program, offering substantial incentives for projects that enhance the nation’s energy infrastructure.
