South Star Announces Re-Start of Santa Cruz Plant Ahead of Schedule

South Star announced that its Santa Cruz graphite processing plant was restarted on April 7, 2026. The restart begins with no‑load testing and will move to full‑load operations once results are satisfactory. Recent upgrades—including a new scrubber/trommel, discharge pump, electrical systems, drying system and filter press—were completed ahead of schedule, putting the project roughly three months ahead of its original timeline despite minor rain delays. Interim CEO Tiago Cunha highlighted confidence in continued progress.

• Operational milestone: The plant restart is a concrete step toward commissioning and eventual commercial production (target 5,000 t/yr in mid‑2026, scaling to 10,000 t/yr by year‑end).
• Schedule acceleration: Being three months ahead reduces the cash‑burn window before revenue generation, modestly improving near‑term liquidity risk.
• Capital efficiency: No new financing was required for the upgrades; the work was funded from existing cash and prior private placements.
• Market expectations: Prior updates (Mar 2026 corporate update) already indicated commissioning expected within 2026 with equipment installations underway. The early restart is a positive surprise but not a game‑changer; it confirms execution rather than introduces new revenue streams.

Conclusion: The news is material in the sense that it moves the company closer to production, yet it was broadly anticipated. It therefore rates as Routine – Positive.

South Star Battery Metals Corp. focuses on developing the Santa Cruz graphite mine in Bahia, Brazil—a vertically integrated operation from ore extraction through processing into battery‑grade graphite concentrate. Phase 1 targets 12,000 t/yr nameplate capacity (5,000 t/yr stable production expected mid‑2026). Phases 2 and 3 aim for up to 50,000 t/yr total capacity by 2029. The company also holds the BamaStar graphite project in Alabama, USA, currently at exploration/evaluation stage.