Tesla (TSLA) Withdraws Termination Notice on Syrah Graphite Supply Deal

Tesla Inc. (TSLA) on June 1, 2026, withdrew a notice of intent to terminate a graphite anode material supply agreement with Australia’s Syrah Resources Ltd., ending months of negotiations that saw the deadline extended four times. The electric-vehicle maker had issued a default notice in July 2025, citing non-conforming active anode material (AAM) samples from Syrah’s Vidalia plant in Louisiana. Syrah said Tesla now accepts that the miner has produced conforming AAM samples and made sufficient progress. Under the 2021 contract, Syrah aims to supply 8,000 metric tons of graphite anode materials over four years from the Vidalia facility—the only vertically integrated, large-scale producer of such materials outside China, reducing U.S. reliance on Chinese supplies for lithium-ion batteries. Tesla reserves the right to terminate the agreement should final qualification of Vidalia AAM not be achieved.