Graphite One and Lucid Motors Sign Landmark Supply Agreement for Electric Vehicle Materials

Graphite One Inc. (TSX-V: GPH) (OTCQX: GPHOF) has reached a significant milestone by securing a non-binding supply agreement with Lucid Group Inc. (NASDAQ: LCID), a leading electric vehicle manufacturer. This agreement, focused on anode active materials (AAM) for electric vehicle batteries, represents the first collaboration of its kind between a U.S. graphite developer and a domestic electric vehicle company.

The agreement outlines plans for Graphite One to supply 5,000 tonnes per annum of anode material to Lucid once production commences. With an initial term of 5 years, this partnership aligns with Graphite One's strategy to develop a complete U.S.-based graphite supply chain, addressing the nation's current 100% import dependency for both synthetic and natural graphite.

Lucid Motors, known for producing advanced electric vehicles, views this partnership as crucial for maintaining technological leadership in the global transition to sustainable transportation. Peter Rawlinson, CEO and CTO at Lucid, emphasized the importance of developing a robust domestic supply chain, stating, "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."

Anthony Huston, President and CEO of Graphite One, described the agreement as "a historic moment" for both companies and North America. He highlighted the potential for revenue generation starting in 2027, subject to project financing for building the AAM facility. Huston expressed enthusiasm about meeting market demands and creating a secure, entirely U.S.-based supply chain for natural and synthetic graphite.

This agreement follows Graphite One's recent selection of a brownfield site in Warren, Ohio, for its proposed AAM facility. The location, previously used by the U.S. Government to stockpile critical minerals for national defense, offers strategic advantages including proximity to the automobile industry and access to low-cost electricity from renewable sources. The site's existing infrastructure can support Graphite One's initial production target of 25,000 tonnes per year of battery-ready anode material, with potential for expansion.

Graphite One's comprehensive plan involves three integrated operational pillars: mining graphite from its Graphite Creek property in Alaska, processing it into concentrate, and manufacturing natural and artificial graphite anode active materials at the Ohio facility. The company also plans to incorporate a recycling facility to reclaim graphite and other battery materials, furthering its circular economy strategy.

The U.S. government has shown strong support for Graphite One's initiatives, awarding the company two significant grants from the Department of Defense. These include $37.5 million for a feasibility study and $4.7 million to develop a graphite-based foam fire suppressant, underscoring the strategic importance of domestic graphite production.

As the demand for electric vehicles and energy storage systems continues to grow, the establishment of a domestic graphite supply chain becomes increasingly critical. This partnership between Graphite One and Lucid Motors represents a significant step towards reducing U.S. dependence on foreign sources for essential battery materials and strengthening the country's position in the rapidly evolving electric vehicle market.