Graphite mine based in Australia Syrah Resources SYAAF took out $107 million in loans from the US Department of Energy to expand its electric vehicle battery parts plant in Louisiana.
The shares of the company, which is a provider of Tesla Inc. TSLAincreased by more than 15% on the Australian scholarship the Tuesday following the news.
Shiraz Managing Director and CEO Shaun Verner said, “The loan will allow Syrah to accelerate its growth strategy in its downstream business and support the rapidly growing electric vehicle and battery supply chain in the United States.”
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While the US Department of Energy has already funded Ford Motor Company F and Tesla through its special funding program – the Advanced Technology Vehicle Manufacturing (ATVM) Loan Program – Syrah’s loan would be the first not directly to an automaker in more than a decade. .
This came in the middle of the president Joe Bidenit is aggressive targets that half of all vehicles sold in the United States will be electric by 2030. The president is working to push the United States ahead of one of its biggest competitors, China, one of the largest producers of electric vehicles.
Recently, the Melbourne-based mining company also signed a binding off-take agreement with Tesla, Inc., owned by billionaire Elon Musk, to supply graphite as an active anode material from its production facility in Louisiana. .
In a filing with the Australian Stock Exchange, Syrah said the loan is conditional pending final documents and is expected to close by June. Funds must be disbursed by September.
price action: According to data from Benzinga Pro, shares of Syrah closed down 4.87% on the NYSE on Monday. Meanwhile, Tesla closed almost 2% higher in an otherwise volatile market.
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