Graphite One and Lucid Motors Ink Supply Deal

Graphite One 'graphite'

In a pioneering move, Canada's Graphite One and US-based Lucid Motors have signed a non-binding agreement for the annual supply of 5,000 tons of synthetic graphite. This marks the first such agreement between a US automaker and a US graphite project, with Graphite One's operations based in Warren, Ohio, and a graphite mine in the Kigluaik Mountains, Alaska.

The deal stipulates that Graphite One will supply 5,000 tons, representing 20% of its initial annual output, to Lucid Motors each year. The sales will be linked to a future market pricing formula.

In September, Graphite One received a $37.5 million grant under the US Defense Production Act. The company aims to open a plant in Ohio with an annual synthetic graphite anode output of 25,000 tons by 2026. Currently, the US relies entirely on imports for synthetic and natural graphite, critical components for electric vehicle batteries.

Lucid CEO Peter Rawlinson emphasized the importance of the agreement, stating, "We are committed to accelerating the transition to sustainable vehicles and the development of a robust domestic supply chain ensures the US and Lucid will maintain technology leadership in this global race."

Graphite One plans to complete its project feasibility study by the fourth quarter of this year. Additionally, the company submitted a grant proposal to the US Department of Energy in the first quarter. CEO Anthony Huston noted, "Management currently anticipates construction and commissioning costs are estimated at $430 million, subject to any unforeseen delays or varied market conditions."