Australia’s Syrah Resources (SYR) surges on Tesla supply deal
06:24, 23 December 2021
Australian graphite miner Syrah Resources surged to close at a near two-year high on Thursday after announcing a supply deal with electric vehicle bellwether Tesla.
Syrah Resources stock ended 23% higher at AUD1.63 on Thursday, its highest close since early February 2019.
The company said it signed an offtake agreement with Tesla to supply natural graphite active anode material (AAM) from its production facility in Vidalia, USA.
Deal to supply Tesla with AAM
Syrah Resources added that Tesla will offtake majority of the proposed initial expansion of the AAM production capacity at Vidalia at a fixed price for an initial term of four years.
Tesla also has an option to offtake additional volume from the company’s facility in Vidalia, subject to Syrah Resources expanding its capacity beyond 10 kilo tonnes per annum AAM, the company said.
Syrah Resources said it plans to make a final investment decision for the expansion of its Vidalia facility in January 2022.
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