Tesla (TSLA) and Australia’s Syrah Resources have agreed to extend Syrah’s deadline to provide the graphite necessary for the anode in Tesla’s lithium-ion batteries to January 16, 2026.
Under the original agreement, Syrah was to provide Tesla (TSLA) with 8,000 metric tons of graphite anode material over a four-year period. However, this past July, Syrah was issued a default notice from Tesla (TSLA) for failing to provide the material samples from Syrah’s Vidalia, Louisiana plant, the second default in two months.
The original deadline was extended to September 16, and then again to November 15, neither of which resulted in a satisfactory outcome.
As the primary material for the anode in Tesla’s (TSLA) lithium-ion batteries, the more stable and lightweight graphite is necessary for storing lithium ions when the battery is charging and is also used in the battery pack for thermal management because of its ability to dissipate heat and prevent the battery from overheating.
By securing the mineral from Syrah, Tesla (TSLA) hopes to reduce its dependence on China, which currently supplies more than three-quarters of the global demand for graphite.