Quick Takeaways
- Syrah Resources Tesla Graphite Offtake Agreement developments remain central to EV battery material supply dynamics.
- The update highlights extended timelines as both parties collaborate on product qualification.
On January 19, 2026, Syrah Resources Limited issued an update on its offtake agreement with Tesla, Inc. covering the supply of natural graphite active anode material from Syrah’s 11.25 ktpa AAM facility in Vidalia, Louisiana. The announcement followed a formal notice received from Tesla concerning sample conformity requirements.
Background to the Syrah Resources Tesla Graphite Offtake Agreement
Under the agreement, Syrah is required to deliver conforming AAM samples produced at the Vidalia facility. Tesla notified Syrah of an alleged default, asserting that the samples provided did not meet agreed specifications. This notification triggered contractual cure provisions within the offtake arrangement.
Revised Timelines and Collaborative Actions
The notice initially required Syrah to remedy the alleged default by January 16, 2026. Both companies have since agreed to extend the cure period to March 16, 2026, reflecting ongoing technical collaboration to address qualification requirements. Discussions are focused on ensuring the Vidalia-produced AAM meets final performance standards.
Key points confirmed by the companies include:
Qualification Milestones and Agreement Amendments
Tesla retains the contractual right to terminate the offtake agreement if final qualification of Vidalia AAM is not achieved by February 9, 2026. To support continued progress, both parties have agreed to amend the agreement, extending this qualification deadline to March 16, 2026. The revised dates provide additional time to complete testing and validation without altering the commercial framework of the agreement.
Syrah Resources stated that it remains engaged with Tesla to resolve the matter within the extended timeframe, reinforcing its commitment to supplying compliant natural graphite anode material from its Vidalia operations, as outlined in the company’s press release.
Background to the Syrah Resources Tesla Graphite Offtake Agreement
Under the agreement, Syrah is required to deliver conforming AAM samples produced at the Vidalia facility. Tesla notified Syrah of an alleged default, asserting that the samples provided did not meet agreed specifications. This notification triggered contractual cure provisions within the offtake arrangement.
Revised Timelines and Collaborative Actions
The notice initially required Syrah to remedy the alleged default by January 16, 2026. Both companies have since agreed to extend the cure period to March 16, 2026, reflecting ongoing technical collaboration to address qualification requirements. Discussions are focused on ensuring the Vidalia-produced AAM meets final performance standards.
Key points confirmed by the companies include:
- Extension of the cure deadline to March 16, 2026
- Continued joint efforts to complete final AAM qualification
- Alignment on amended terms to reflect the revised timeline
Qualification Milestones and Agreement Amendments
Tesla retains the contractual right to terminate the offtake agreement if final qualification of Vidalia AAM is not achieved by February 9, 2026. To support continued progress, both parties have agreed to amend the agreement, extending this qualification deadline to March 16, 2026. The revised dates provide additional time to complete testing and validation without altering the commercial framework of the agreement.
Syrah Resources stated that it remains engaged with Tesla to resolve the matter within the extended timeframe, reinforcing its commitment to supplying compliant natural graphite anode material from its Vidalia operations, as outlined in the company’s press release.
Company Press Release
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