Overview
- Tesla notified Syrah Resources that it had withdrawn its notice of intent to terminate the supply agreement after months of negotiations and four deadline extensions.
- The automaker accepted that Syrah has produced conforming natural graphite active anode material, a processed battery ingredient that goes into lithium‑ion EV batteries.
- Tesla kept its contractual right to cancel the deal if Syrah fails to secure final qualification for Vidalia material, so the relationship remains conditional.
- Syrah said it is in advanced stages of qualification testing for material made at its Vidalia, Louisiana, plant and its share price jumped sharply on the announcement.
- The agreement, signed in 2021 to supply 8,000 metric tons over four years, matters for U.S. supply security because Vidalia is one of the few large‑scale anode producers outside China and final approval will determine whether that option is commercially viable.