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VIDALIA, La. — A $165 million Inflation Reduction Act tax credit awarded to Syrah Resources will support the potential expansion of the active anode material (AAM production facility in Vidalia to a 45ktpa (kilotonne per annum) capacity.

The Vidalia facility produces AAM, a product sold to EV battery manufacturers that is made from graphite mined in Syrah’s Balama operation.

Syrah Technologies LLC was awarded a tax credit of approximately $165 million by the US Internal Revenue Service under the US Inflation Reduction Act’s Section 48C Qualifying Advanced Energy Project Tax Credit Program. The 48C Tax Credit will support the potential expansion of the Vidalia AAM facility.

The 48C tax credit program, managed by the IRS  with assistance from the US Department of Energy Office of Manufacturing & Energy Supply Chains, was originally established by the  American Recovery and Reinvestment Act of 2009, and subsequently expanded by $10 billion under the IRA. The 48C tax credit program seeks to fund critical projects that, among other objectives, expand US critical materials processing and refining capacity and are aligned with the economic and energy security goals of the IRA.
Syrah Technologies was selected for the 48C Tax Credit from more than 350 applications for the second $6 billion round of the 48C tax credit program under the IRA and based on DOE’s recommendation.
Under the IRA, the 48C Tax Credit can be monetized for cash through its transfer, in part or whole, to a third-party US federal taxpayer and/or utilized to offset federal corporate income tax liabilities of Syrah Technologies.

To claim the 48C Tax Credit, Syrah Technologies must satisfy certain requirements set forth in Section 48C of the Internal Revenue Code including meeting prevailing wage and apprenticeship requirements, satisfying certain certification requirements associated with the 45ktpa AAM Vidalia facility within two years, and placing the 45ktpa AAM Vidalia facility into service within the two years following such certification.
While focusing on cost management, Syrah is progressing with transition engineering, permitting and other long-lead procurement activities for the Vidalia expansion project, officials announced. A final investment decision will be considered by the Syrah Board.

Commercial AAM sales from the 11.25ktpa AAM Vidalia facility and significant customer commitments are vital for the Company to finalize project financing and will determine the timing of the company’s investment decision.