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Syrah Resources in Australia and Tesla will further extend the deadline for a graphite supply agreement

Syrah Resources in Australia and Tesla will further extend the deadline for a graphite supply agreement
Syrah Resources in Australia and Tesla will further extend the deadline for a graphite supply agreement

The Australian miner Syrah said Monday it had reached an agreement with Tesla to extend a deadline for addressing alleged non-compliance of their graphite contract, the second in two months.

Elon Musk's automaker, Tesla, issued a default notification in July because Syrah had allegedly failed deliver active anode samples that were conforming from its Louisiana facility processing Tesla's batteries.

Syrah stated that the original deadline of September 16, which was originally extended to November 15, has been further pushed back to January 16, 2020.

The company stated that "Syrah has not accepted it is in breach of the offtake contract, but the parties have extended to 16 January 2026 the cure date."

The 2021 contract between Syrah and Tesla called for the company to provide 8,000 metric tonnes of graphite materials over a period of four years from its Vidalia facility in Louisiana, U.S.A.

This facility is the only large-scale, vertically integrated anode material manufacturer outside of China. It helps reduce U.S. dependency on Chinese supplies, which dominate the market.

Syrah stated that under the agreement it signed, Tesla may terminate the agreement if the final qualification of active anode materials at the plant is not completed by February 9, 2026.

Tesla didn't immediately respond to our request for a comment.

Syrah announced that a subsidiary received $8.5m under a loan of $150m from the United States International Development Finance Corporation. The money was used to support its Balama graphite operation in Mozambique, which had been affected by nationwide protests. (Reporting and editing by Jamie Freed in Bengaluru, Nikita Maria Jio from Bengaluru)

(source: Reuters)