Syrah Resources said on Monday it and Tesla have agreed to extend the deadline to cure an alleged default under their graphite supply agreement to June 1. This marks the fourth extension of the timeline tied to a dispute over sample conformity from Syrah's Vidalia processing plant in Louisiana.
According to Syrah, Tesla previously issued a notice claiming that Syrah had not met an obligation to supply conforming natural graphite active anode material - often shortened to AAM - samples from Vidalia. That notice required Syrah to remedy the alleged breach by March 16. If Syrah had not cured the alleged default by that date, Tesla would have been able to terminate the offtake agreement that covers output from Syrah's Vidalia facility, which has capacity of 11.25 kilotons per annum of AAM.
The two companies have now amended the agreement to push the cure date out to June 1. Syrah said the extension is subject to approval by the U.S. Department of Energy. Syrah also said it does not accept that it is in default, but that both parties consented to the extended deadline while they work together to resolve the matter.
The original 2021 contract calls for 8,000 tons a year of supply for four years to Tesla and has been described by Syrah as a foundational element for the Vidalia facility and its wider plan to establish itself as a U.S.-based supplier of non-Chinese graphite. Tesla, which is headquartered in Texas, first issued a notice alleging default in July 2025, asserting that Syrah failed to deliver conforming AAM samples from Vidalia for use in electric-vehicle batteries.
Shares of Syrah responded modestly to the announcement, trading up 2.9% at A$0.175 as of 2302 GMT on Monday.
Context and implications
The extension pauses the immediate threat of termination under the offtake terms while both firms pursue a path to resolution. The requirement for U.S. Department of Energy approval for the amendment adds a further procedural step before the new deadline becomes final.