June 1 (Reuters) - Australia's Syrah Resources said on Monday Tesla had withdrawn a notice of intent to terminate a graphite supply deal, ending months of negotiations that saw the two companies extend a resolution deadline four times.
Syrah aimed to supply 8,000 metric tons of graphite anode materials to electric vehicle maker Tesla over a four-year period from its Vidalia plant in the U.S. state of Louisiana under the 2021 contract.
The Vidalia plant is the only vertically integrated, large-scale
producer of anode materials outside China, helping reduce U.S. dependence on Chinese supplies that dominate the market.
Graphite is used in the lithium-ion batteries that power electric vehicles.
Elon Musk-led Tesla issued a default notice in July 2025, citing conformity issues with active anode material (AAM) samples delivered from the Vidalia facility.
In a statement to the ASX on Monday, Syrah said Tesla now accepts that the miner has demonstrated it is producing conforming AAM samples and has made sufficient progress.
Miner Syrah said Tesla has reserved its existing right to terminate the supply agreement should the final qualification of Vidalia AAM not be achieved.
In March, Tesla and Syrah had agreed to extend for the fourth time the deadline to resolve the alleged default under their graphite supply agreement to June 1.
(Reporting by Rajasik Mukherjee; Editing by Jacqueline Wong and Subhranshu Sahu)
