Syrah Resources Secures Seven-Year Graphite Offtake Agreement with NextSource for Balama Mine Production
Australian graphite producer Syrah Resources has signed a multi-year binding conditional offtake agreement with NextSource Materials for the supply of natural graphite fines from its flagship Balama Graphite Mine.
Under the agreement, announced Monday, Syrah will supply between approximately 34,000 tonnes and 68,000 tonnes of graphite fines over a seven-year period, with deliveries scheduled to begin no earlier than June 1, subject to certain conditions being met.
The material will be shipped to Abu Dhabi, where it will support downstream processing activities.
Syrah said the deal highlights the growing strategic importance of its Balama operation as one of the world’s largest sources of natural graphite outside China, particularly for the rapidly expanding ex-China battery and anode materials supply chain.
Pricing under the agreement will be set quarterly, based on a premium to an independently reported price index for natural graphite fines, with adjustments made for product grade and shipping costs.
The graphite supplied under the contract will meet a specification of -100 mesh particle size with carbon content of 94% or higher.
The offtake agreement is conditional on the commencement of commercial production at NextSource’s planned anode material facility in Abu Dhabi, as well as approval from the company and its downstream customers to use graphite sourced from the Balama mine.
If these conditions are not met or waived by December 31, 2026, Syrah will have the right to terminate the agreement. Meanwhile, NextSource retains the option to terminate if the conditions remain unmet by December 31, 2027.
Toronto-based NextSource, which operates the Molo Graphite Mine, is progressing plans to establish a large-scale anode material facility in Abu Dhabi aimed at supplying a Japanese downstream customer involved in battery production.
The company has already secured property and an existing building in the emirate, signed an offtake agreement with its Japanese partner, and finalized term sheets for strategic funding as it advances toward a final investment decision on the project’s initial commercial capacity.
The partnership reflects increasing global demand for natural graphite, a critical mineral used in lithium-ion battery anodes, as the energy transition accelerates and manufacturers seek diversified supply chains outside traditional production hubs.
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