Syrah Awarded ~US$165 million IRA Tax Credit

Syrah Resources Limited (ASX: SYR) (“Syrah” or “Company”) announces its wholly owned subsidiary Syrah Technologies LLC (“Syrah Technologies”) was awarded a tax credit of approximately US$165 million by the US Internal Revenue Service (“IRS”) under the US Inflation Reduction Act’s (“IRA”) Section 48C Qualifying Advanced Energy Project Tax Credit Program (“48C Tax Credit”). The 48C Tax Credit will support the potential expansion of the Vidalia active anode material (“AAM”) facility in Louisiana, USA to a 45ktpa AAM production capacity (“Vidalia Further Expansion”)

The Vidalia Further Expansion project is a Clean Energy Manufacturing and Recycling Project and entails optimizing and expanding the integrated AAM processing facility at Vidalia from its currently installed and operational 11,250tpa AAM production capacity to a 45,000tpa AAM production capacity. The Project aims to support manufacturing, processing, and refining of AAM from natural graphite feedstock using equipment and processes commercially proven historically in the global anode industry and being operated in Phase 2. The Project, in construction, will create up to 600 direct and 120 indirect jobs. The Project, in operations, will add an operational workforce of 114 jobs.

Syrah Technologies was selected for the 48C Tax Credit from more than 350 applications for the second US$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 monetised for cash through its transfer, in part or whole, to a third-party US federal taxpayer and/or utilised 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 a two-year period, and placing the 45ktpa AAM Vidalia facility into service within the two-year period following such certification.

US Department of Treasury’s media release on the allocation of Section 48C tax credits is on its website (https://home.treasury.gov/news/press-releases/jy2779)