Lucid, Graphite One enter supply deal for EV battery-ready anode material

Lucid Group (NASDAQ:LCID) has signed a non-binding supply agreement with graphite developer Graphite One (OTCQX:GPHOF) for anode active materials (AAM) to drive development of sustainable vehicles and strengthen domestic supply chain.

The deal provides for 5,000 tpa once Graphite One (OTCQX:GPHOF) commences production of synthetic graphite. The initial term is for 5 years, subject to earlier termination.

In March 2024, the company selected a brownfield site in Warren, Ohio for its proposed AAM facility. The site’s existing power lines are sufficient to support the firm’s Phase 1 production target of 25,000 tonnes per year of battery-ready anode material. In addition, land is available for follow-on phases to ramp production to 100,000 tpy.

Subject to project financing required to build the AAM facility, the agreement puts Graphite One (OTCQX:GPHOF) on the path to produce revenue in 2027.

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.” The EV maker is preparing its state-of-the-art factory in Arizona to begin production of the Lucid Gravity SUV.