Syrah and Tesla extend graphite supply default deadline
Syrah and Tesla extended a deadline to resolve an alleged graphite supply default to June 1. The move allows more time to address material quality concerns.
Australia-based graphite miner SYRAH RESOURCES LTD and Tesla, Inc. have agreed to extend the deadline for resolving an alleged default concerning their graphite supply agreement. The companies have pushed the resolution date to June 1, representing the fourth extension of the timeline.
The disagreement stems from a notice issued by Tesla alleging that Syrah failed to meet its obligations to provide conforming natural graphite active anode material (AAM) samples from its Vidalia facility in the United States. The original notice required the miner to rectify the alleged default by March 16, after which Tesla would have had the right to terminate the offtake agreement covering the 11.25 kilotons-per-annum facility in Louisiana.
