Syrah Technologies bags $11.7m advanced manufacturing tax credit

Syrah Technologies LLC, a wholly-owned subsidiary of Syrah Resources Limited, has received a US$11.7 million direct payment from the US Internal Revenue Service. This payment is for its first Advanced Manufacturing Production credit under Section 45X of the Inflation Reduction Act (IRA), specifically for its 11.25ktpa AAM facility in Vidalia, Louisiana. The cash proceeds are held in restricted accounts and, with Department of Energy approval, can fund Vidalia operating costs.

Syrah Technologies is eligible for Section 45X Production Credits equivalent to 10% of Vidalia’s production costs, including material costs and tax depreciation. At full capacity, the 11.25ktpa AAM facility is estimated to yield US$7-9 million annually in credits, before the phase-down period begins in 2030.

The company has chosen to receive these credits as direct payments, treated as a refundable overpayment of tax, and anticipates receiving further direct payments for Section 45X Production Credits in the second half of the calendar year.