Why did Syrah Resources (ASX:SYR) share price jump 7% today?

The mineral and technology company has soared even higher today.

| More on:
A young man wearing glasses and a denim shirt sits at his desk and raises his fists and screams with delight.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

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.

More on Share Market News

A smiling businessman in the city looks at his phone and punches the air in celebration of good news.
Broker Notes

These ASX 200 shares could rise 50% to 60%

Brokers believe these shares could deliver big returns for investors.

Read more »

A girl is handed an oversized ice cream cone with lots of different flavours.
Best Shares

8 ASX All Ords shares that tripled in value in FY25

Just 8 out of the 500 companies making up the ASX All Ords achieved share price growth of 200% or…

Read more »

Broker written in white with a man drawing a yellow underline.
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

Woman with a scared look has hands on her face.
Broker Notes

Bapcor shares fell more than 30% yesterday. Should investors buy in the dip?

Is this a value opportunity?

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Broker Notes

Broker raises price targets on 2 ASX 200 shares to buy

Ord Minnett has just upped its 12-month share price targets on 2 buy-rated ASX 200 stocks.

Read more »

Man with rocket wings which have flames coming out of them.
Share Gainers

Guess which ASX All Ords stock just rocketed 34% on strong earnings growth

Investors just sent this ASX All Ords stock surging 34%. Here’s what’s happening.

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why DroneShield, Gentrack, Metals X, and Northern Star shares are tumbling today

These shares are ending the week in the red. But why?

Read more »

A businessman looking at his digital tablet or strategy planning in hotel conference lobby. He is happy at achieving financial goals.
Share Gainers

Why Dimerix, Newmont, Regal Partners, and Titomic shares are storming higher

These shares are having a good finish to the week. Let's see why.

Read more »