Syrah Resources Extends Tesla Graphite Supply Deadline to June 1 Amid Dispute
Australian graphite miner Syrah Resources announced on Monday that it has agreed with Tesla to extend, for the fourth time, the deadline to resolve an alleged default under their graphite supply agreement to June 1.
Tesla had previously issued a notice claiming that Syrah failed to provide conforming natural graphite active anode material (AAM) samples from its Vidalia facility in Louisiana. The notice required Syrah to address the alleged default by March 16.
If unresolved, Tesla could have terminated the offtake agreement covering supply from Syrah’s 11.25-kilotons-per-annum AAM facility in Vidalia.
The companies have now agreed to amend the agreement, extending the deadline to June 1, subject to approval from the U.S. Department of Energy.
The original 2021 contract with Tesla, which is valued at 8,000 tons annually over four years, supports Syrah’s Vidalia facility and its broader strategy to become a major U.S. supplier of non-Chinese graphite.
Tesla, headquartered in Texas, issued the first default notice in July 2025, asserting that Syrah had failed to deliver compliant active anode material samples for use in electric vehicle batteries.
Syrah stated on Monday that it does not accept it is in default but confirmed that both parties agreed to extend the cure date to June 1 while they work together to resolve the matter.
Shares of Syrah rose 2.9% to A$0.175 as of 23:02 GMT.
About the Author
