The Syrah Resources Ltd (ASX: SYR) share price has shot up again today off the back of its agreement with electric car giant, Tesla, Inc (NASDAQ: TSLA).
With no further news released today, the minerals and technology company appears to be basking in the afterglow of its significant deal.
At the close of trade today, the Syrah share price was up 6.83% at $1.80 apiece. This followed yesterday’s lift of 3.3%. Let’s take a closer look at the latest news.
What’s the deal?
Last week, the company detailed an offtake agreement with Tesla in which it would supply natural graphite from its vertically integrated activity anode material (AAM) production facility in Vidalia, Georgia, in the United States.
Yesterday, the mineral and technology company gave more detail on the agreement, saying the collaboration would be subject to both parties agreeing to the final specifications of the offtake by no later than 31 December next year.
Under the terms, the product must be to Tesla’s satisfaction by no later than 31 May 2025.
The agreement may also be subject to termination should the project not be up and running by exactly a year prior.
If satisfied with the above conditions, Tesla will offtake 8kt of expansion at Syrah’s US facility per annum, which compares to the 10kt initially planned.
Syrah share price snapshot
This year has been a positive one for the Syrah share price, which has seen a massive jump of 87.5% since January.
Based on its current share price, the company has a market capitalisation of more than $897 million.
The post Why did Syrah Resources (ASX:SYR) share price jump 7% today? appeared first on The Motley Fool Australia.
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Motley Fool contributor Alice de Bruin has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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