Electric vehicle manufacturer Tesla and Australian mining company Syrah Resources announced Monday they have reached their fourth agreement to postpone a resolution deadline for a disputed graphite supply contract until June 1st.
According to Syrah Resources, Tesla had issued a formal complaint claiming the mining company did not fulfill its contractual duty to supply proper natural graphite active anode material samples from Syrah’s Louisiana-based Vidalia processing plant.
Tesla’s formal complaint set March 16 as the deadline for Syrah to fix the claimed breach, with the electric car company holding the right to cancel their supply agreement for Syrah’s 11.25 kilotons-per-year facility in Vidalia if the issue remained unresolved.
Both companies have now modified their agreement to push the resolution deadline to June 1st, pending authorization from the U.S. Department of Energy.
The original 2021 supply deal between the two companies calls for Tesla to purchase 8,000 tons of graphite annually over four years, forming the foundation of Syrah’s Vidalia operations and the company’s larger goal to establish itself as a leading American source of graphite not sourced from China.
The Texas-based automaker first raised concerns in July 2025, claiming Syrah had not delivered acceptable active anode material samples from the Vidalia plant for use in electric vehicle battery production.
In Monday’s announcement, Syrah stated it disputes Tesla’s default claims but confirmed both parties have mutually agreed to extend the resolution timeframe to June 1st while they collaborate on addressing the concerns.
Following the announcement, Syrah’s stock price climbed 2.9% to A$0.175 as of 2302 GMT.
