Key insights
- Tesla has resolved a graphite supply default with Syrah Resources, with the latter demonstrating production of conforming anode material samples. This agreement, crucial for Tesla's battery production, averts a potential disruption and allows Syrah's shares to surge. The resolution removes a minor overhang for Tesla, potentially easing concerns about battery material sourcing.
Investing.com-- Syrah Resources Ltd (ASX:SYR) said on Monday that Tesla Inc (NASDAQ:TSLA) had withdrawn its intent to terminate a graphite offtake agreement with the company after it made progress towards resolving an alleged supply default.
Shares of the Australian miner surged 38% after its announcement.
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Syrah said that Tesla accepted it had demonstrated production of conforming natural graphite active anode material samples, and had withdrawn its intent to end their offtake agreement.
The two had agreed in 2021 for Syrah to supply 8,000 metric tons of graphite anode materials to Tesla from its Vidalia plant in Louisiana.
But Tesla had accused Syrah of producing subpar samples from the Vidalia facility, and had issued a default notice in July 2025.
The two had repeatedly sparred over the past year, having extended the deadline to resolve the alleged default four times since July.
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