This article first appeared on GuruFocus .
Tesla Inc. ( TSLA , Financials ) and Australian mining company Syrah Resources have agreed to extend a deadline to resolve an alleged default under their graphite supply agreement, giving both sides additional time to address technical requirements tied to electric vehicle battery materials.
Syrah said the companies agreed to push the deadline to June 1, marking the fourth extension since Tesla first raised concerns. The original notice required Syrah to resolve the issue by March 16 or risk termination of the supply agreement.
Tesla previously alleged that Syrah failed to provide conforming samples of natural graphite active anode material from its Vidalia processing facility in Louisiana. The material is a key component used in lithium-ion batteries for electric vehicles.
The agreement between the two companies is central to Syrah's strategy to become a major supplier of battery materials in the United States. The 2021 contract covers deliveries of 8,000 tons of graphite material annually over four years and supports production from the company's 11.25 kiloton-per-year facility in Vidalia.
Syrah said it does not agree that it is in default but confirmed both companies are working together to resolve the matter while the extended deadline remains in place.
