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Graphite One and Lucid Group have entered into a non-binding supply agreement for synthetic anode active materials, marking a significant milestone for both companies and the U.S. electric vehicle (EV) industry. This agreement aims to accelerate the transition to sustainable vehicles by establishing a robust domestic supply chain for advanced graphite materials.
Key Highlights:
- Historic Agreement: First synthetic graphite supply agreement between a U.S. graphite developer and a U.S. EV company.
- Supply Agreement Details: Non-binding, providing for 5,000 tpa of synthetic graphite once production commences, with an initial term of five years.
- Graphite One’s Domestic Strategy: Developing a complete U.S.-based supply chain anchored by the Graphite Creek deposit, the largest graphite deposit in the U.S.
- Lucid’s Commitment: Focused on accelerating the transition to sustainable vehicles and maintaining U.S. technology leadership in the EV industry.
“We are committed to accelerating the transition to sustainable vehicles and the development of a robust domestic supply chain ensures the United States, and Lucid, will maintain technology leadership in this global race,” said Peter Rawlinson, CEO and CTO at Lucid. “Through work with partners like Graphite One, we will have access to American-sourced critical raw materials, helping power our award-winning vehicles made with pride in Arizona.”
“This is a historic moment for Graphite One, Lucid, and North America: the first synthetic graphite Supply Agreement between a U.S. graphite developer and U.S. EV company,” said Anthony Huston, President and CEO of Graphite One. “G1 is excited to continue pushing forward developing our 100% U.S. domestic supply chain. We appreciate the support from our investors and the grant from the Department of Defense. Subject to project financing required to build the AAM facility, the Supply Agreement with Lucid puts G1 on the path to produce revenue in 2027, and that’s just the beginning for Graphite One as we work to meet market demands and create a secure 100% U.S.-based supply chain for natural and synthetic graphite for U.S. industry and national security.”
The Supply Agreement follows Graphite One’s selection in March of this year of a site for the Company’s proposed AAM facility. The location, a brownfield site in Warren, Ohio, previously used for storage of National Defense Stockpile critical minerals by the U.S. Government, is located in the heart of the automobile industry, in an area with ample low-cost electricity produced from renewable energy sources. The site’s existing power lines are sufficient for Graphite One’s Phase 1 production target of 25,000 tonnes per year (“tpy”) of battery-ready anode material, and land is available for follow-on phases to ramp to 100,000 tpy of production.
Lucid is a California-based technology company focused on creating the most advanced EVs in the world. The company’s flagship vehicle, Lucid Air, delivers best-in-class performance and efficiency starting at $69,900 and has been recognized with a number of leading awards, including MotorTrend 2022 Car of the Year, World Luxury Car of the Year, and Car and Driver 10 Best. Lucid is preparing its state-of-the-art, vertically integrated factory in Arizona to begin production of the Lucid Gravity SUV.
Terms of the Supply Agreement: The Supply Agreement is non-binding, providing for 5,000 tpa once Graphite One commences production of synthetic graphite. The initial term is for five years, subject to earlier termination. Sales are based on an agreed price formula linked to future market pricing as well as satisfying base case pricing agreeable to both parties. The Supply Agreement is subject to other terms, conditions, and termination rights standard for an agreement of this nature.
Graphite One’s Domestic Supply Chain Strategy: With the United States currently 100% import dependent for synthetic and natural graphite, Graphite One is developing a complete U.S.-based, advanced graphite supply chain solution anchored by the Graphite Creek deposit, recognized by the US Geological Survey as the largest graphite deposit in the U.S. “and among the largest in the world.” The Graphite One Project plan includes building an advanced graphite material and battery anode material manufacturing plant located in Warren, Ohio. The plan also includes a recycling facility to reclaim graphite and other battery materials, to be co-located at the Ohio site, the third link in Graphite One’s circular economy strategy.
About Graphite One Inc.: GRAPHITE ONE INC. continues to develop its Graphite One Project (the “Project”) to become an American producer of high-grade anode materials that is integrated with a domestic graphite resource. The Project is proposed as a vertically integrated enterprise to mine, process, and manufacture anode active materials primarily for the lithium‐ion electric vehicle battery market. As set forth in the Company’s 2022 Pre-Feasibility Study, graphite mineralization mined from the Company’s Graphite Creek Property, situated on the Seward Peninsula about 60 kilometers north of Nome, Alaska, would be processed into concentrate at an adjacent processing plant. Natural and artificial graphite anode active materials and other value‐added graphite products would be manufactured from the concentrate and other materials at the Company’s proposed advanced graphite materials manufacturing facility located in northeastern Ohio. The Company intends to make a production decision on the Project upon the completion of a Feasibility Study.
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