Jan 19 (Reuters) - Australia’s Syrah Resources (SYR.AX) said on Monday it agreed with Tesla (TSLA.O) to extend for the third time a deadline to resolve an alleged breach of their graphite supply agreement.
The 2021 agreement to supply 8,000 metric tons of graphite a year over four years is key to Syrah’s Vidalia, Louisiana operations and the company’s strategy to become the first major non-Chinese supplier of the metal to the United States.
Texas-heaquartered Tesla issued the first default notice in July 2025, saying Syrah had failed to deliver conforming active anode material samples from its Vidalia processing facility for use in electric-vehicle batteries.
The companies have now agreed to push the cure deadline to March 16, 2026, subject to approval from the U.S. Department of Energy.
The original September 16 deadline was extended to November 15 before it was pushed to January 16.
“While Syrah does not accept it is in default under the offtake agreement, the parties have extended the cure date to March 16, 2026 and are closely collaborating to cure the alleged default,” the Australian miner said in a statement.
The Vidalia facility is the only vertically integrated, large-scale anode material producer outside China, offering an alternative to Chinese supplies that dominate the market.
Tesla, led by the world’s richest person, Elon Musk, also retains the right to terminate the supply deal if the active anode material supplied by Syrah does not meet its technical specifications by February 9.
Shares of the graphite producer fell 6.6% to A$0.285 in early trade on Monday, hitting their lowest level since December 22, while the broader mining sub-index (.AXMM) was up 0.6%.

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Australia’s Syrah Resources has extended the deadline with Tesla to resolve an alleged breach of their graphite supply agreement for the third time. The agreement, crucial for Syrah's operations in Louisiana, involves supplying 8,000 metric tons of graphite annually. The new deadline is set for March 16, 2026, pending U.S. Department of Energy approval. Tesla issued a default notice in July 2025 due to non-compliance with material samples. Syrah's shares fell 6.6% amid the ongoing negotiations.

- Syrah Resources has extended a deadline with Tesla regarding an alleged breach of their graphite supply agreement, originally set for September 16.  
- The extension allows Syrah until March 16, 2026, to resolve issues related to the delivery of active anode material samples needed for electric-vehicle batteries.  
- Despite not accepting a default status, Syrah's shares declined by 6.6% following the news, while Tesla retains the right to terminate the agreement if specifications are not met by February 9.

Australia's Syrah Resources buys more time for Tesla graphite supply deal