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Tesla & Syrah: Graphite Deal Deadline Extended Again
16 Mar
Summary
- Syrah Resources and Tesla extended their graphite supply deadline to June 1.
- Tesla alleged Syrah failed to provide conforming graphite AAM samples.
- The contract is for 8,000 tons annually of graphite for four years.
Australian graphite miner Syrah Resources announced on March 16, 2026, that it has agreed with Tesla to extend a deadline concerning a graphite supply agreement for a fourth time. The new deadline to resolve an alleged default is now set for June 1, 2026.
Previously, Tesla had issued a notice alleging Syrah's failure to supply conforming natural graphite active anode material (AAM) samples from its Vidalia facility in Louisiana. This notice required Syrah to cure the alleged default by March 16, 2026, or risk Tesla terminating their offtake agreement. This agreement covers supply from Syrah's 11.25 kilotons per annum AAM facility in Vidalia.
The companies have now agreed to amend the deal, extending the cure date to June 1, 2026, provided the U.S. Department of Energy approves the extension. This contract, established in 2021, is for 8,000 tons of graphite annually over four years and underpins Syrah's Vidalia facility and its ambition to become a significant U.S. supplier of non-Chinese graphite.
Syrah asserts that it does not accept it is in default. However, both parties have agreed to the extended cure date while they collaborate to address the concerns. Tesla had first issued a default notice in July 2025. Syrah's shares saw a 2.9% increase following the announcement.
