Syrah extends Tesla graphite deal deadline – for the third time
According to Reuters, this marks the third deadline extension in the matter. The extension relates to the binding offtake agreement signed between Syrah Resources and Tesla in 2021 for the supply of graphite as active anode material from Syrah’s production facility in Vidalia, Louisiana, USA. As the news agency reports, the contract covers the delivery of 8,000 tonnes of graphite per year over a four-year period.
Tesla first issued a notice of delay in July 2025, stating that Syrah had failed to deliver compliant samples of active anode material from its processing plant in Vidalia. The original deadline of 16 September was first extended to 15 November and then to 16 January. According to a statement by Syrah, the companies have now agreed to extend the deadline for remedying the delay to 16 March 2026, subject to approval by the US Department of Energy.
From its facility in Vidalia, Louisiana, the Australian commodity company aims to become the first major non-Chinese supplier of battery-grade graphite in the USA. In fact, the plant is the only large-scale, vertically integrated producer of anode materials outside China, making it the sole alternative to Chinese suppliers. According to statements made in 2021, Tesla was set to be the primary customer for a planned expansion of the Vidalia facility and had secured the majority of the planned production capacity at a fixed price.
However, such risks are inherent in new raw material processing plants: lead times are long, investments are high, and delays are always possible. Conditions can change between the signing of a contract and the start of deliveries – for example, the USA pursued a different policy under former President Donald Trump than under his successor, Joe Biden. Tesla’s situation has also evolved: in 2021, the company was fully focused on growth, but it has now recorded falling sales for the second consecutive year. Additionally, Tesla is reportedly scaling back its plans for in-house battery production – a supply contract with L&F for cathode material has been almost entirely cancelled.
Nevertheless, Tesla remains interested in Syrah Resources’ graphite – at least for the time being. According to the Australian company’s statement, Tesla reserves the right to terminate the 2021 supply contract if the active anode material delivered by Syrah does not meet the technical specifications by 9 February. “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 statement reads. “Tesla has the right to terminate the offtake agreement if final qualification of Vidalia AAM is not achieved by 9 February 2026.”
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