A Louisiana graphite processing plant that supplies Tesla to get a $107M DOE loan

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The US Department of Energy’s (DOE) Loan Programs Office has announced a conditional commitment to lend up to $107 cardinal to Syrah Technologies for its Syrah Vidalia Facility successful Vidalia, Louisiana. The installation produces a finished earthy graphite-based progressive anode worldly (AAM), a captious worldly utilized successful lithium-ion batteries. 

At the extremity of December, Tesla announced an offtake deal with Syrah Vidalia to unafraid graphite AAM for artillery production.

As Electrek antecedently reported, Australia’s Syrah Resources Limited operates a graphite excavation successful Balama, Mozambique. The excavation supplies the Vidalia facility, arsenic the US presently produces nary graphite.

A conditional commitment from the Loan Programs Office means that the borrower has to conscionable definite conditions earlier the indebtedness is finalized, and the immense bulk of conditional commitments issued by DOE person resulted successful a indebtedness guarantee.

Assuming conditions are met, the Syrah Vidalia task would beryllium the archetypal indebtedness from the Loan Programs Office’s Advanced Technology Vehicles Manufacturing (ATVM) program successful much than a decade. 

It would besides beryllium the first-ever ATVM indebtedness to enactment a proviso concatenation manufacturing project.

The Syrah Vidalia Facility volition usage the wealth to grow its existing 50,000-square-foot installation by 180,000 quadrate feet. It’s expected to nutrient capable AAM for astir 2.5 cardinal EVs by 2040.

Construction is expected to statesman immediately, and the completion and accumulation people is the 3rd 4th of 2023.

The enlargement volition make astir 150 operation jobs and 98 well-paid, highly skilled operations jobs wrong the cleanable vigor sector.

Jigar Shah, manager of the Loan Programs Office astatine the Department of Energy, told Electrek via email:

Once completed, the Syrah Vidalia Facility could catalyze a home proviso concatenation of captious minerals similar graphite for US car and EV artillery manufacturers. The DOE Loan Programs Office is moving to onshore EV manufacturing, artillery manufacturing, and captious materials projects, and we impulse funny applicants to scope retired to america contiguous to spot however we mightiness assistance to finance their project.

Electrek’s Take

The Biden medication said that it would put successful home manufacturing and accumulation to enactment the electrical conveyance industry, and this conditional committedness from the DOE Loan Programs Office delivers connected that promise.

Syrah Vidalia is expected to beryllium the lone vertically integrated, large-scale AAM shaper extracurricular of China and the archetypal battery-grade earthy graphite supplier successful the US to enactment the increasing electrical conveyance industry. This is simply a large improvement for the US EV industry.

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