Submit a Press Release or News Tip Tesla’s decision does not remove all risk from the arrangement, as the automaker retains the right to terminate the deal if Syrah fails to secure final qualification approval. Syrah said it is currently in the advanced stages of qualification testing and approvals for material produced at its Vidalia facility in Louisiana. Under a supply agreement signed in 2021, Syrah is expected to provide Tesla with 8,000 metric tons of natural graphite active anode material from the facility over four years. The companies had been working through the dispute for months, with Tesla and Syrah extending the deadline to resolve the alleged default for a fourth time in March, giving Syrah until June 1 to address the qualification concerns. The deal gives Tesla access to a U.S.-based source of graphite anode material, a key battery component, helping reduce its reliance on China-dominated supply chains. Maintaining the Tesla relationship removes a near-term uncertainty for Syrah as it works toward commercial-scale production and customer qualification. Risks remain if Syrah is unable to secure final qualification approval, according to Craig Sidney, a senior investment adviser at Shaw and Partners. Syrah stock surged over 23% to AUD 0.12, equivalent to $0.09, at the time of writing in Sydney, while Tesla shares closed 1.4% lower on Friday. Benzinga Edge Rankings indicate that Tesla stock carries a Momentum score in the 58th percentile and a Growth score in the 88th percentile. Share: