Syrah Resources, the ASX-listed graphite producer, is set for a moment in the sun with demand for the key battery material expected to send spot prices up by more than 50 per cent, according to brokers at UBS.
UBS anticipates Syrah, which owns the Balama mine in Mozambique, is well-placed, alongside Talga Resources, a pre-revenue explorer hoping to build a graphite mine and battery processing facility in Sweden. “In natural graphite we marginally prefer ASX-listed Talga over Syrah. In a quickly growing market this isn’t a zero-sum game,” Mr Shaw said.as being critical to national security and economic growth.
“But supply chain localisation makes our expectation of growing [supply] deficits by 2030 in both synthetic and natural graphite feasible.”, offers one of the few options outside of China for those seeking the material. “That cost decreas[es] to below $400 per tonne once Balama operates at full capacity... Reset shipping costs and increasing production costs in China are improving our competitiveness in supply,” he said.