News: SYR FOCUS-Synthetic graphite for EV batteries: Can the West crack China's code?, page-18

In the picture is lines and rows of individual mills and shaping machines. They all need to be calibrated and tested sometimes taking several attempts. The mills to grind each individual flake into the correct size so the shaping machines can fold the edges inward to create a spherical shape 18nm in diameter (1 cm = 10m nm). I believe you can only calibrate a few, don't know how many at a time. I read in the last quarterly? SYR is setting up their own testing facility. They'll then run a few of their not by much rejects through the purification and coating process for testing as well. Then send the first batch of AAM to Tesla for testing. Tesla will put it into battery cells to test how it performs with the cathode and electrolyte. They'll also put the battery cells through thousands of cycles to see how it performs and hopefully doesn't catch fire. It all takes time. I'm not sure if Tesla wants to test each batch after we get the first one right and rely on SYR's own testing.




The FID will be announced once they secure the funding. They'll order all the long lead time equipment straight away and it should take 2 yrs to build. Hopefully finished by early 2026. Full production 2027/28. The trick will be getting back as many contractors as possible from the 1st build. I gather they'll do each module progressively ie the ground works crew will move onto the 2nd module after the first while they pour the slabs and erect the buildings on the first etc etc

I'm hoping the DOE LPO comes to the party so we don't require a JV. A JV means dilution. I'd rather pay back the loan. If there is no other choice than a JV, we take the $220 grant to pay most of our half. Possibly sell half of the original 11.25kt to the JV to pay for the rest. Which means SYR gets a free carry with the grant and the half sale to get to 22.5kt (their share) plus the revenue from half the concentrate required (~35kt). We also need to pay back Aus super $150m + interest for the 3 notes so it won't be until 2030 before you'll see a dividend.

The full DOE LPO loan would make paying dividends earlier at a smaller initial rate but much higher into the future. Then there is the EU JV expansion to fund as well.

Every other want to be fully integrated graphite producer has to go through the same process as we have and all bar a very haven't started. Most are still drilling or trying to raise cash to build a pilot plant and/or a mine which is tough with graphite prices so low. They mainly intend to start their mines small and progressively get bigger which means they won't get near full production until some time in the 2030's and only if they can sell the larger size flake which is what they'll mainly produce.