June 1 (Reuters) – Australia’s Syrah Resources said on Monday Tesla had withdrawn a notice of intent ‌to terminate a graphite supply deal, ending months ‌of negotiations that saw the two companies extend a resolution deadline ​four times.

Syrah aimed to supply 8,000 metric tons of graphite anode materials to electric vehicle maker Tesla over a four-year period from its Vidalia plant in the U.S. ‌state of Louisiana under ⁠the 2021 contract.

The Vidalia plant is the only vertically integrated, large-scale producer of anode ⁠materials outside China, helping reduce U.S. dependence on Chinese supplies that dominate the market.

Graphite is used in the lithium-ion ​batteries ​that power electric vehicles.

Elon Musk-led ​Tesla issued a default ‌notice in July 2025, citing conformity issues with active anode material (AAM) samples delivered from the Vidalia facility.

In a statement to the ASX on Monday, Syrah said Tesla now accepts that the miner has demonstrated it is ‌producing conforming AAM samples and has ​made sufficient progress.

Miner Syrah said ​Tesla has reserved ​its existing right to terminate the supply ‌agreement should the final qualification ​of Vidalia AAM ​not be achieved.

In March, Tesla and Syrah had agreed to extend for the fourth time the deadline ​to resolve ‌the alleged default under their graphite supply agreement to ​June 1.

(Reporting by Rajasik Mukherjee; Editing by ​Jacqueline Wong and Subhranshu Sahu)