Australia’s Syrah Resources has agreed with an electric vehicle manufacturer to extend, for the third time, the deadline to address a dispute over their graphite supply agreement. Under a 2021 pact, Syrah committed to deliver 8,000 metric tons of active anode material annually for four years from its Vidalia, Louisiana, facility. The deal is central to Syrah’s goal of becoming the first major non-Chinese graphite supplier to the U.S. market.
The automaker issued its first default notice in July 2025, citing Syrah’s inability to provide conforming anode material samples that meet its technical standards. The companies previously pushed the cure date from September to November 2025 and then to January 16, 2026. They have now set a new target of March 16, 2026, subject to approval from the U.S. Department of Energy.
Syrah maintains it does not accept it is in default and said it is collaborating with its partner to resolve the alleged breach. The Vidalia plant represents the only vertically integrated, large-scale anode material producer outside China, offering an alternative to Chinese-dominated supplies.
The agreement also includes a clause allowing the automaker to terminate the contract if Syrah fails to meet technical specifications by February 9, 2026. Analysts note that securing reliable, high-quality graphite is crucial for electric-vehicle battery performance and the broader North American supply chain.
In early Monday trade, Syrah’s shares dropped 6.6% to A$0.285, marking their lowest level since December 22. By contrast, the broader mining sub-index showed a modest gain of 0.6%.
Syrah’s efforts to address the technical issues at Vidalia will be closely watched by industry stakeholders seeking to diversify graphite sources and strengthen domestic battery material supply chains. The outcome may influence future collaborations between battery raw-material producers and major electric-vehicle manufacturers as they navigate evolving quality standards and regulatory requirements.
Source: Reuters
