Australia-headquartered graphite miner Syrah Resources (OTC:SYAAF) has bagged $107 million in loans from the U.S. Department of Energy to expand its electric vehicle battery parts plant in Louisiana.
Shares of the company, which is a supplier to Tesla Inc (NASDAQ:TSLA), spiked more than 15% on the Australian Stock Exchange on Tuesday following the news.
Syrah 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 EV and battery supply chain in the USA."
See Also: Why Tesla Rivals Nio, Xpeng Are Trading Lower In Hong Kong Today
While the U.S. Energy Department has previously funded Ford Motor Company (NYSE:F) and Tesla through its special funding program – the Advanced Technology Vehicles Manufacturing (ATVM) loan program – Syrah's loan would be the first not directly to an automaker in more than a decade.
This came amid President Joe Biden's aggressive targets for half of all vehicles sold in the United States to be electric-powered by 2030. The president is putting efforts to push the U.S. ahead of one of its biggest competitors, China, one of the biggest producers of EVs.
Recently, the Melbourne-based mining company also signed a binding offtake agreement with Billionaire Elon Musk-owned Tesla, Inc. for the supply of graphite as active anode material from its Louisiana production facility.
In a filing to the Australian Stock Exchange, Syrah said the loan is conditional pending final paperwork and is expected to be closed by June. The funds are to be disbursed by September.
Price Action: According to data from Benzinga Pro, shares in Syrah closed 4.87% lower on the NYSE on Monday. At the same time, Tesla closed almost 2% higher in an otherwise volatile market.
