South Star Announces Santa Cruz Operational Update; First Shipment of Graphite Shipped

South Star Battery Metals Corp. (STS) released a first-half 2026 operational update for its Santa Cruz graphite plant in Brazil, highlighting significant production gains and operational stability. The company confirmed that in June 2026, 100% of graphite concentrate produced met commercial specifications for 95% carbon grade flake graphite.

Operational efficiency improved markedly during the period, with ROM feed throughput increasing approximately 30% month-over-month from May to June 2026. Consequently, graphite concentrate production doubled from May to June 2026. Despite these higher production rates, reagent consumption, identified as the highest-cost production input, remained well-controlled.

Management is currently monitoring over 4,000 process and quality data points to optimize the plant toward a target capacity of 5,000 tonnes per annum (tpa) of graphite concentrate. Interim CEO Tiago Cunha highlighted steady learning curves and positive early indications from regular data monitoring as the company continues to refine operations.

South Star Battery Metals Corp. (STS) issued an operational update on July 22, 2026, following its April restart and May operational reports. The company confirmed that progress toward its 5,000 tpa production target is proceeding as planned, with consistent concentrate quality and rising throughput. The release validated the plant’s ability to produce commercially viable concentrate, confirming the success of recent engineering upgrades and commissioning efforts.

The update was incremental and expected, introducing no new capital, major off-take agreements, or changes to the company’s financial trajectory. South Star Battery Metals Corp. continues to disclose a going concern status and a working capital deficit, meaning operational progress alone does not de-risk the investment. The market likely priced in this ramp-up trajectory following the April restart and May financing.

South Star Battery Metals Corp. (STS) is a graphite developer focused on the Santa Cruz Graphite Mine in Brazil. The company’s flagship project is transitioning from commissioning to commercial production following a successful restart in April 2026, three months ahead of schedule.

South Star Battery Metals Corp. previously abandoned the BamaStar graphite project in Alabama due to sub-par economics, refocusing all capital and operational efforts on Santa Cruz. Phase 1 targets 5,000 tpa of graphite concentrate, with plans to expand to 10,000 tpa by year-end 2026. Additionally, the company is exploring downstream processing partnerships in the United States to enhance value chain integration.