Tesla withdraws termination notice on graphite supply deal with Australia’s Syrah

Tesla has withdrawn a notice of intent to terminate its 2021 graphite anode supply agreement with Syrah Resources, ending months of negotiations and four deadline extensions. Syrah will aim to deliver 8,000 metric tons of graphite anode material over four years from its Vidalia, Louisiana plant — the only large-scale vertically integrated anode producer outside China. Tesla now accepts that Syrah has demonstrated conforming active anode material samples and made sufficient progress, though it retains the right to terminate if final qualification is not achieved. The move reduces near-term supply-chain uncertainty for Tesla and lowers execution risk for Syrah, removing a cloud over future battery-material sourcing and potential revenue streams while leaving some conditional risk until final qualification is completed.