Shares of Syrah Resources (ASX:SYR) rose 9.8% to A$0.703, hinting toward its best day since May 5 if the gains sustain.

The graphite producer has entered a deal with South Korea’s Samsung SDI for scrutinizing the supply of natural graphite active anode from Syrah’s Vidalia facility in the U.S.

As per the deal, both parties will test and qualify the active anode material in order to finalize a binding offtake agreement by July 10, 2024 at the latest.

Syrah has announced that the offtake agreement pertains to up to 10,000 tonnes of active anode material per annum, commencing from 2026.

Despite the surge, the company’s stock is down by approximately 68% YTD as per the last closing.

Syrah Resources is a graphite producer with key operations in the Vidalia facility in the United States.