Syrah Resources Ltd (ASX:SYR) said on Monday that Tesla Inc (NASDAQ:TSLA) had withdrawn its intent to terminate a graphite offtake agreement after progress was made to resolve an alleged supply default.
Shares of the Australian miner surged 38% on the news.
Syrah said Tesla accepted it had demonstrated production of conforming natural graphite active anode material samples and withdrew its intent to end the agreement.
The two had agreed in 2021 for Syrah to supply 8,000 metric tons of graphite anode materials to Tesla from its Vidalia plant in Louisiana.
But Tesla had accused Syrah of producing subpar samples from Vidalia and issued a default notice in July 2025.
The parties had sparred repeatedly over the past year, extending the deadline to resolve the alleged default four times since July.
