Tesla has withdrawn its threat to terminate a graphite supply agreement with Australian producer Syrah Resources. This resolution ends a year-long standoff regarding the quality of active anode material (AAM).
Syrah will supply 8,000 metric tons of AAM annually from its Louisiana facility. The plant serves as a critical non-Chinese source for Tesla's battery production.
The deal was finalized one day before a June 1, 2026, deadline. Tesla acknowledged that Syrah successfully produced conforming material samples. Syrah Resources' shares surged as much as 41.4% following the news.