Key Points
- Tesla and Syrah Resources have extended a deadline to resolve a graphite supply dispute.
- The new deadline is March 16. Syrah denies that it is in default.
- Tesla accused Syrah of defaulting on the 2021 agreement in July 2025.
- The dispute has sent Syrah’s stock price lower.
Tesla and the Australian mining company Syrah Resources are still trying to work out their differences over a major graphite supply deal. On Monday, Syrah announced that the two companies had agreed to extend the deadline to resolve a dispute that began last year.
Tesla first accused Syrah of defaulting on the agreement back in July 2025. The carmaker claimed that Syrah had failed to deliver the required amount of anode materials from its Vidalia, Louisiana, processing facility. The two companies have since extended the deadline to fix the problem twice, and this latest extension pushes the new deadline to March 16.
For its part, Syrah continues to deny that it is in default of the agreement.
The original deal, signed in 2021, was a big one. It made Syrah the first non-Chinese graphite supplier to Tesla and was a key part of the plan for the new Vidalia facility. Graphite is a critical material for the batteries used in electric vehicles, and Tesla has been working hard to diversify its supply chain and reduce its reliance on China.
The ongoing dispute is clearly making investors nervous. Syrah’s shares fell 3.3% after the latest extension was announced. For now, both companies are still at the negotiating table, but the clock is ticking.
