Micah Jonah
March 16, 2026
Australian graphite producer Syrah Resources Ltd has agreed with Tesla Inc to extend the deadline to resolve an alleged default under their graphite supply agreement to June 1, 2026. This marks the fourth extension of the deadline.
Tesla had previously issued a notice claiming that Syrah failed to deliver conforming natural graphite active anode material (AAM) samples from its Vidalia facility plant in Louisiana. The original notice required Syrah to address the alleged default by March 16, or risk termination of the offtake agreement, which covers an annual supply of 11.25 kilotons of AAM.
The contract, signed in 2021, spans four years and obliges Syrah to supply 8,000 tons per year, supporting its strategy to become a major U.S. supplier of non-Chinese graphite.
Syrah stated that it does not accept being in default but agreed with Tesla to extend the cure date to June 1 while both parties work together to resolve the matter. Approval for the extension is also required from the U.S. Department of Energy.
Following the announcement, Syrah’s shares rose 2.9% to A$0.175.
This extension allows both Syrah and Tesla more time to address technical issues in a critical supply chain that underpins the growing electric vehicle battery market.
