The rapid growth of the EV and energy storage industries is boosting demand for high-performance lithium batteries, driving the market for quality petroleum coke and synthetic graphite. The quality and particle size of calcined petroleum coke directly affect synthetic graphite performance, especially in anode production.

【Graphite Anodes】Overseas Anode Projects Fall Short of Expectations! Tesla Delays Graphite Anode Supply Agreement Again

Australian Syrah Resources (SYR.AX) announced today that it has agreed with Tesla (TSLA.O) to further extend the final deadline for resolving the so-called "breach" issue, marking the second extension within two months; the graphite miner is striving to maintain normal operations at its U.S. business.

In July this year, Tesla issued a breach notice to Syrah, citing that Syrah failed to deliver compliant active anode material samples from its processing plant in Louisiana on schedule, intended for Tesla's electric vehicle batteries.
In its statement, Syrah said that the originally scheduled resolution deadline of September 16 was first extended to November 15, and has now been further postponed to January 16, 2026.

"Although Syrah does not consider itself in violation of the purchase agreement, both parties have agreed to extend the remediation deadline to January 16, 2026."

According to the agreement signed by both parties in 2021, Syrah plans to supply Tesla with 8,000 tons of graphite anode material over four years from its Vidalia anode material processing plant in Louisiana, USA.
This plant is currently the only large-scale vertically integrated anode material production base outside China, aimed at reducing U.S. dependence on Chinese graphite supply.
Syrah also disclosed that if the plant's active anode material certification is not completed by February 9, 2026, Tesla has the right to terminate the purchase agreement. Tesla has not yet responded to Reuters' request for comment.

In another announcement on the same day, Syrah stated that its subsidiary has drawn $8.5 million from a $150 million loan provided by the U.S. International Development Finance Corporation (DFC) to support operations at the Balama graphite mine in Mozambique; the mine was halted for six months last year due to nationwide protests, and Syrah's Mozambique graphite operations only resumed on October 28.

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