ASX All Ords mining stock Syrah Resources Ltd (ASX: SYR) is taking a hit today.
Shares in the Aussie graphite producer closed on Friday trading for 30.5 cents. In morning trade on Monday, shares are swapping hands for 28.7 cents apiece, down 5.9%.
For some context, the All Ordinaries Index (ASX: XAO) is down 0.1% at this same time.
Here's what's happening.
Image source: Tesla
ASX All Ords mining stock catching Tesla headwinds
Investors are pressuring Syrah Resources shares today following an update on its offtake agreement with Tesla Inc (NASDAQ: TSLA).
The offtake agreement with Elon Musk's EV company is for the supply of natural graphite active anode material (AAM) from Syrah's 11.25 thousand tonne per annum Vidalia AAM facility, located in the US state of Louisiana.
The ASX All Ords mining stock initially executed the offtake agreement with Tesla back in December 2021.
On 30 July 2025, Syrah announced to the market that Tesla had sent a notice alleging that Syrah had defaulted on an obligation under the agreement to provide conforming AAM samples from Vidalia.
Following an amended notice, Tesla required Syrah to cure the alleged default by last Friday, 16 January, or risk the termination of the offtake agreement. Tesla has the right to terminate the agreement if final qualification of Vidalia AAM is not achieved by 9 February.
Syrah stated that it does not accept that it is in default under the offtake agreement.
However, in news that has yet to lift the ASX All Ords mining stock today, the company said that it is closely collaborating with Tesla to cure the alleged default. In light of the collaborative efforts, the two companies have agreed to amend the offtake agreement to extend the potential termination date to 16 March.
The amended agreement remains subject to the consent of the United States Department of Energy.
What's the latest from Syrah Resources?
Syrah Resources reported its first quarter (Q1 FY 2026) results on 28 October.
Among the highlights, the ASX All Ords mining stock produced 26,000 tonnes of natural graphite at its Balama mine and processing facility, located in Mozambique.
Over the three months to 30 September, the miner sold and shipped 24,000 tonnes of natural graphite to third-party customers at an average price of US$625 per tonne.
Commenting on the quarterly performance on the day, Syrah CEO Shaun Verner said:
Syrah's operational highlights for the third quarter included the safe ramp-up of operations at Balama following the extended non-operating period and the completion of large-volume breakbulk shipments to Indonesia and the US.
As for its US operations that involve the offtake agreement with Tesla, Verner noted, "The company's successful capital raising in July better positions us to manage market volatility and extended AAM qualification processes at Vidalia."
