Graphite One Secures Supply Agreement with Lucid Motors, Boosting U.S. EV Industry
TL;DR
Graphite One's non-binding supply agreement with Lucid Group Inc. for anode active materials provides credibility and reassurance.
The agreement entails a supply of 5,000 tonnes per annum of anode material to Lucid once Graphite One commences production, based on an agreed price formula linked to future market pricing.
This landmark collaboration ensures a robust domestic supply chain for sustainable vehicles, national security, and technology leadership in the global race.
Graphite One's plan to transform the U.S. graphite industry includes a site selection in Ohio's 'Voltage Valley' and a circular economy strategy.
Found this article helpful?
Share it with your network and spread the knowledge!
Graphite One Inc. (TSX-V: GPH) (OTCQX: GPHOF) has announced a noteworthy development with its entry into a non-binding supply agreement with Lucid Group Inc. (NASDAQ: LCID) to provide anode active materials (AAM). This partnership represents the first synthetic graphite supply agreement between a U.S. graphite developer and a U.S. electric vehicle (EV) manufacturer.
Lucid Motors, renowned for producing advanced electric vehicles, will benefit from this collaboration by securing access to American-sourced critical raw materials. Peter Rawlinson, CEO and CTO of Lucid, emphasized the importance of this agreement for maintaining technology leadership and supporting the transition to sustainable vehicles. He noted that the partnership ensures a robust domestic supply chain, vital for the production of Lucid's award-winning vehicles in Arizona.
Anthony Huston, President and CEO of Graphite One, highlighted the historical significance of the agreement, which aligns with the company's goal to develop a 100% U.S.-based supply chain. This agreement is expected to enable Graphite One to commence revenue generation by 2027, contingent on project financing for its AAM facility. The initiative aims to meet market demands and enhance national security by creating a secure supply chain for natural and synthetic graphite.
The agreement coincides with Graphite One's recent decision to establish its AAM facility at a brownfield site in Warren, Ohio. This location, previously used by the U.S. Government to stockpile National Defense critical minerals, is well-suited for the project due to its proximity to the automobile industry and access to renewable energy sources. The site is expected to support an initial production target of 25,000 tonnes per year (tpy) of battery-ready anode material, with plans for future expansion to 100,000 tpy.
The U.S. currently relies entirely on imports for synthetic and natural graphite. Graphite One's comprehensive strategy to develop a domestic supply chain aims to reduce this dependency. The company's plans include mining graphite from its Graphite Creek deposit in Alaska, processing it into concentrate, and manufacturing anode materials in Ohio. Additionally, a recycling facility will be co-located at the Ohio site to reclaim graphite and other battery materials, further enhancing the circular economy strategy.
The terms of the Graphite One-Lucid supply agreement allow for the provision of 5,000 tonnes per annum (tpa) of anode material to Lucid for an initial term of five years, subject to earlier termination and standard terms and conditions. Sales will be based on a price formula linked to future market pricing.
Graphite One's ambitious plans have garnered substantial support from the U.S. Government, including grants from the Department of Defense. These initiatives are strategically designed to position Graphite One as a significant player in the U.S. graphite supply chain, aiming to meet the growing demands of electrification and technological advancements.
Curated from News Direct
