Tesla has withdrawn its threat to terminate a crucial graphite supply agreement with Syrah Resources, resolving a year-long standoff just before the final deadline on June 1, 2026. This decision led to a significant surge in Syrah's shares, which rose between 23% and 38%. The original agreement, signed in December 2021, required Syrah to supply 8,000 metric tons of active anode material annually from its Vidalia facility in Louisiana. The dispute began in July 2025 when Tesla issued a default notice over quality concerns, leading to four deadline extensions. With the threat now lifted, Syrah can focus on scaling production and maintaining quality. This agreement is vital for Tesla to secure domestic graphite supply, reducing dependency on Chinese sources and aligning with US clean energy incentives.