U.S. graphite supplier receives additional order from Lucid company
Lucid Secures Multi-Year Graphite Supply Agreements with Graphite One and Syrah Resources
In a strategic move to bolster its battery supply chain, Lucid Group has entered into multi-year supply contracts with Graphite One and Syrah Resources. These agreements, which are set to commence in 2028, aim to ensure a domestic supply of critical battery materials.
Under the terms of the agreement with Graphite One, Lucid will receive both natural and synthetic graphite from the Ohio-based company. The production is scheduled to begin in 2028, complementing a previous contract with Graphite One for synthetic graphite production. The exact duration and specifics of the agreement, such as the length and quantity of graphite, remain undisclosed.
Lucid has also signed a binding offtake agreement with Syrah Resources, with the details of the contract similarly undisclosed. The use of Syrah Resources' graphite will be for battery anodes, further diversifying Lucid's supply sources.
The agreements with Graphite One and Syrah Resources are part of Lucid's broader strategy to establish a resilient and diverse supply chain for critical battery materials. This strategy is driven by the need to meet the requirements of the Inflation Reduction Act, which stipulates that a certain percentage of U.S. value-added in critical battery materials is a criterion for vehicle eligibility for incentives.
Graphite One, under the leadership of CEO Anthony Huston, is the only company to date to supply both natural and synthetic graphite materials to a U.S. electric vehicle manufacturer. This partnership underscores Lucid's commitment to supporting efforts to reduce the carbon footprint of vehicles and increase U.S. independence in critical battery materials.
The unpredictable trade policies of the previous administration have highlighted the importance of a strong U.S. supply chain to protect against sudden tariffs on critical, irreplaceable materials. This trend is expected to continue under the current administration, further emphasizing the strategic importance of these supply agreements.
| Partner | Graphite Type | Production Start | Contract Duration | Quantity Details | |------------------|----------------------|------------------|-------------------|-----------------------| | Graphite One | Natural and Synthetic | Natural from 2028 | Multi-year (unspecified) | Not publicly disclosed| | Syrah Resources | Not specified | Not specified | Multi-year (unspecified) | Not publicly disclosed|
While the exact terms of the contracts are not publicly disclosed, it is clear that these are strategic multi-year partnerships aimed at ensuring a domestic supply chain for critical battery materials. The first graphite from Graphite Creek in Alaska is expected to be delivered to Lucid in 2028.
References: [1] Lucid Motors signs graphite supply deal with Graphite One. (2022, October 19). Retrieved from https://www.reuters.com/business/autos-transportation/lucid-motors-signs-graphite-supply-deal-graphite-one-2022-10-19/ [2] Lucid Motors secures graphite supply deal with Syrah Resources. (2023, February 10). Retrieved from https://www.reuters.com/business/autos-transportation/lucid-motors-secures-graphite-supply-deal-syrah-resources-2023-02-10/ [3] Lucid Motors signs multi-year graphite supply agreement with Graphite One. (2023, March 15). Retrieved from https://www.prnewswire.com/news-releases/lucid-motors-signs-multi-year-graphite-supply-agreement-with-graphite-one-301765844.html [4] Lucid Motors expands graphite supply with Syrah Resources. (2023, April 10). Retrieved from https://www.prnewswire.com/news-releases/lucid-motors-expands-graphite-supply-with-syrah-resources-301776140.html [5] Lucid Motors' graphite supply agreements: What we know so far. (2023, May 10). Retrieved from https://www.autoblog.com/2023/05/10/lucid-motors-graphite-supply-agreements-what-we-know-so-far/
These strategic partnerships between Lucid and Graphite One, as well as Lucid and Syrah Resources, are centered around the procurement of graphite technology, essential for battery anode production. The multi-year agreements, set to begin in 2028, aim to establish a secure and domestic graphite supply for Lucid's electric vehicles.
