Tesla withdrew its threat to terminate a graphite supply agreement with Australian producer Syrah Resources.
The resolution ends a year-long standoff regarding the quality of active anode material (AAM).
Syrah Resources shares surged as much as 41.4% following the announcement.
The agreement requires Syrah to supply 8,000 metric tons of AAM annually from its Louisiana facility.
This site represents one of the few large-scale, non-Chinese sources for the essential battery component.
Tesla acknowledged Syrah's progress in producing conforming samples just one day before a June 1, 2026, deadline.
The decision stabilizes Tesla's supply chain and removes a significant financial overhang for both companies.