Highlights

  • Syrah shares declined 4.10% to AUD 0.292 during morning trading on 19 January.
  • The cure date under the Tesla offtake agreement has been extended to 16 March 2026.
  • Final qualification timing for Vidalia AAM has also been proposed for extension, subject to regulatory consent.

Shares of Syrah Resources Limited (ASX: SYR) moved lower in Monday morning trade after the company released an update on its offtake agreement with Tesla, Inc. The graphite producer confirmed revised timelines linked to qualification milestones for natural graphite active anode material from its Vidalia facility in the United States.

Details of the Tesla Offtake Agreement

Syrah’s offtake agreement with Tesla covers supply from the company’s 11.25ktpa Vidalia AAM facility in Louisiana. The agreement has been central to Syrah’s downstream processing strategy and engagement with battery supply chains in North America.

In a presentation released to the ASX on 30 July 2025, Syrah disclosed that it had received a notice from Tesla alleging a default related to the provision of conforming AAM samples from the Vidalia facility. The notice required the issue to be resolved by 16 January 2026, failing which Tesla may have been able to terminate the agreement.

Cure Date Extended to March 2026

Syrah stated that while it does not accept that a default has occurred, both parties have agreed to extend the cure date to 16 March 2026. The company confirmed that it is working closely with Tesla to address the matters raised in the notice within the revised timeframe.

This extension provides additional time for collaboration between the parties as qualification processes continue at the Vidalia facility.

Qualification Timeline Amendment Under Review

Under the existing terms, Tesla has the right to terminate the offtake agreement if final qualification of Vidalia AAM is not achieved by 9 February 2026. Syrah and Tesla have agreed to amend the agreement to extend this qualification deadline to 16 March 2026.

The proposed amendment is subject to approval from the United States Department of Energy, which is required before the revised timeline can take effect.

Company Overview

Syrah Resources is an ASX-listed industrial minerals and technology company with operations spanning upstream graphite production in Mozambique and downstream processing in the United States. The company continues to advance its Vidalia facility alongside its flagship Balama Graphite Operation.