Australia's Syrah, Tesla extend deadline to resolve alleged default in graphite supply deal

March 16 (Reuters) - Australian graphite miner Syrah Resources SYR.AX said on Monday it agreed with Tesla TSLA.O to extend for a fourth time a deadline to resolve an alleged default under their graphite supply agreement to June 1.

Tesla had previously issued a notice alleging that Syrah failed to meet an obligation to provide conforming natural graphite active anode material (AAM) samples from its Vidalia facility in Louisiana, according to the company.

The notice required Syrah to cure the alleged default by March 16, failing which Tesla could terminate the offtake agreement covering supply from Syrah's 11.25 kilotons-per-annum AAM facility in Vidalia.

The companies have agreed to amend the deal to extend that deadline to June 1, subject to approval from the U.S. Department of Energy.

The 2021 contract with Tesla, worth 8,000 tons annually for four years, underpins Syrah's Vidalia facility and its broader strategy to become a major U.S. supplier of non-Chinese graphite.

Texas-headquartered Tesla issued the first default notice in July 2025, saying Syrah had failed to deliver conforming active anode material samples from its Vidalia processing facility for use in electric‑vehicle batteries.

Syrah said on Monday it does not accept that it is in default but that both parties had agreed to extend the cure date to June 1 while they work together to address the issue.

Shares of Syrah were up 2.9% at A$0.175 as of 2302 GMT.