Tesla Extends Deadline with Syrah Resources Amid Graphite Supply Dispute

Australia’s Syrah Resources has once again secured an extension from Tesla to address an alleged default in their graphite supply agreement, marking the second deadline shift in just two months. The miner confirmed that the new cure date has been pushed to January 16, 2026, giving both companies more time to resolve issues surrounding the delivery of active anode material for Tesla’s electric vehicle batteries.

Tesla issued the default notice in July after citing Syrah’s alleged failure to provide conforming active anode material samples from its Vidalia facility in Louisiana. The plant, which plays a crucial role in reducing U.S. reliance on China for graphite anode materials, is the only vertically integrated and large-scale producer of its kind outside China. Syrah maintains that it has not breached the terms of its offtake agreement but acknowledged the mutual decision to extend the deadline for resolving the dispute.

The original agreement, signed in 2021, requires Syrah to supply Tesla with 8,000 metric tons of graphite anode materials over four years. This supply was expected to support Tesla’s push to secure reliable, U.S.-based sources of critical battery components as the EV maker continues expanding its electric vehicle production. Despite the ongoing qualification challenges at the Vidalia facility, the company’s statement underscores its commitment to meeting the required standards.

Under the contract terms, Tesla retains the option to terminate the agreement if Syrah fails to achieve final material qualification by February 9, 2026. While Tesla has not publicly commented on the latest extension, the prolonged deadline offers both parties additional time to resolve performance concerns.

Separately, Syrah disclosed that one of its subsidiaries received $8.5 million as part of a $150 million loan from the U.S. International Development Finance Corporation. The funding aims to bolster Syrah’s Balama graphite operations in Mozambique, which encountered significant disruptions last year due to widespread national protests.

The company continues to position itself as a key player in the global battery materials supply chain as demand for electric vehicles accelerates worldwide.