The Australian company Syrah Resources has agreed with Tesla for the third time to extend the settlement of a dispute over a contract for the supply of graphite for electric vehicles.
Syrah Resources said it had agreed with Tesla to extend the contract for the supply of graphite until March 16, 2026. This is the third extension since Tesla first announced that it had violated the agreement.
The 2021 agreement was for 8,000 tons of graphite per year over four years and is key to Syrah’s Vidalia, Louisiana facility. The transaction also reflects the company’s strategy to become the first major supplier graphite in the USA outside of China.
Tesla, which is headquartered in Texas, filed its first notice of default in July 2025. The company said Syrah did not provide active anode material samples from the Vidalia plant that met specifications for electric vehicle batteries.
The original settlement deadline of September 16 was previously postponed to November 15 and then to January 16. The companies are now working together to resolve the alleged violation. Syrah noted that it does not admit that it is in violation of the contract, but has agreed to a new deadline and is actively cooperating with Tesla to fulfill the conditions.
The Vidalia plant is the only major anode material manufacturer outside of China, offering alternative Chinese supplies, which dominate the market. Tesla retains the right to terminate the contract if Syrah’s material does not meet specifications by February 9, 2026.
Following the extension announcement, Syrah shares fell 6.6% to A$0.285, their lowest level since December 22, while the mining index rose 0.6%.
The extension of the Tesla deal gives Syrah Resources additional time to resolve disputes and strengthen its position in the US electric vehicle graphite market.
Source: MINING.COM
Image: Syrah Resources
