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Melbourne-based mining company Syrah Resources has struck a landmark deal with Elon Musk’s Tesla to supply graphite, one of the key ingredients needed to make electric car batteries.As the era of electric cars begins to dawn and demand for battery raw materials expected to surge in the coming years, car-makers worldwide are racing to secure supplies of minerals such as lithium, nickel and graphite.Tesla, the world’s most valuable electric car-maker, has struck a deal to buy graphite from Australia’s Syrah Resources.CREDIT:APNews of Syrah Resources’ deal to supply Tesla, the world’s most valuable car-maker, sent the miner’s stock price soaring more than 30 per cent, to $1.78, on Thursday morning. Syrah’s shares were subsequently put in a trading halt after the ASX requested further details about the terms of the Tesla agreement.Under the agreement, Tesla will buy the majority of graphite active anode output material expected from Syrah’s proposed expansion of its plant in the US state of Louisiana. The raw materials will come from Syrah’s Balama graphite mine in MozambiqueAdvertisementSyrah on Thursday said the deal provided a “compelling foundation” to proceed with the expansion works of the Louisiana production facility. The company is expected to make a final decision on the project in January.RELATED ARTICLEMiningRio Tinto buys $1.15 billion lithium mine in battery push“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) still account for just 3 per cent of new sales, uptake is strengthening in China, the United States and Europe, as governments begin setting deadlines to phase out petrol-engine vehicles and unleash huge stimulus packages targeting transport electrification.Analysts are now projecting EVs will account for 40 per cent of vehicle sales by 2030 fuelling a five-fold rise in demand for supplies of some raw materials.AdvertisementPledges made by a growing number of nations, including Australia, at last month’s COP26 climate summit to hit “net-zero” greenhouse gas emissions by 2050 have also added to expectations that essential ingredients needed to make wind turbines, solar panels, lithium-ion batteries and electric vehicle infrastructure are on the verge of an unprecedented surge in demand.Some of Australia’s biggest mining companies, which count the steel-making ingredient iron ore as their biggest commodity, are increasingly looking to diversify into what the industry describes as “future-facing” minerals. This week, Rio Tinto has struck a deal to buy a lithium mine in Argentina for $US825 million ($1.15 billion), while BHP and Fortescue have been locked in a bidding war for the Canadian nickel miner Noront Resources.