Syrah will supply natural graphite from its production facility in the US to Tesla, for use in as battery anode material.

The company's Vidalia plant, in Louisiana, in supplied from the Balama graphite operation in Mozambique. This is the first battery grade graphite processing facility in the US.

Graphite, the key component in battery anodes, is primarily mined and processed in China. Demand for battery grade graphite is soaring due the growth of the new energy sector.

Syrah shares surged by A30c yesterday to $1.63, valuing the company at $812.9 million.