Melbourne-based mining organization Syrah Resources has hit a milestone deal with Elon Musk’s Tesla to supply graphite, one of the key ingredients expected to make electric car batteries.

As the time of electric cars starts to dawn and demand for battery raw materials expected to surge in the coming years, car-makers worldwide are racing to get supplies of minerals like lithium, nickel and graphite.

Insight about Syrah Resources’ deal to supply Tesla, the world’s most important car-maker, sent the miner’s stock price taking off more than 30%, to $1.78, on Thursday morning. Syrah’s shares were along these lines placed in a trading stop later the ASX mentioned further insights regarding the terms of the Tesla agreement.

Under the agreement, Tesla will purchase most of graphite active anode output material anticipated from Syrah’s proposed development of its plant in the US state of Louisiana. The raw materials will come from Syrah’s Balama graphite mine in Mozambique.

Syrah on Thursday said the deal gave a “compelling foundation” to continue with the extension works of the Louisiana production facility. The organization is relied upon to make a final decision on the project in January.

“Syrah is advancing commercial and technical engagement with other target customers to develop Vidalia active anode material for mass production and secure additional long-term purchase commitments for Vidalia,” the company said in a statement.

While electric vehicles (EVs) actually represent only 3% of new sales, take-up is fortifying in China, the United States and Europe, as governments start setting deadlines to deliberately eliminate petrol-engine vehicles and release colossal stimulus packages focusing on transport electrification.

Examiners are currently projecting EVs will represent 40% of vehicle sales by 2030, fuelling a five-fold rise in demand for supplies of some raw materials.

Vows made by a developing number of countries, including Australia, finally month’s COP26 climate summit to hit “net-zero” greenhouse gas emissions by 2050 have additionally added to assumptions that fundamental ingredients expected to make wind turbines, solar panels, lithium-particle batteries and electric vehicle infrastructure are nearly an unprecedented surge in demand.

Some of Australia’s greatest mining organizations, which count the steel-making ingredient iron ore as their greatest commodity, are progressively hoping to broaden into what the industry portrays as “future-facing” minerals. This week, Rio Tinto has struck a deal to purchase a lithium mine in Argentina for $US825 million ($1.15 billion), while BHP and Fortescue have been locked in an offering battle for the Canadian nickel miner Noront Resources.