Lucid Motors and Graphite One have signed a brand new non-binding provide settlement that entails artificial anode lively supplies. By the settlement, the American automaker seems to cater its BEV provide chain to extra domestically sourced supplies.
As you in all probability already know, Lucid Motors ($LCID) is a California-based BEV automaker at the moment promoting one flagship mannequin – the Air sedan. The comparatively younger automaker is gaining momentum in 2024 because it approaches mass manufacturing of its all-electric encore, an SUV known as the Gravity.
Whereas a number of variants of the Air are thought of out of the finances for a lot of American customers, Lucid has a long run plan in place to ship extra choices which might be extra reasonably priced however nonetheless as much as its excessive efficiency requirements.
The automaker has already delivered probably the most environment friendly automotive on this planet in its 2025 RWD Air Pure however has additionally shared plans for a 3rd mannequin within the works, at the moment codenamed “Mid-size.” Larger effectivity means much less want for battery cells, which equates to a decrease general value in manufacturing, which trickles all the way down to customers searching for a brand new EV.
Moreover, localizing provide chains is one other means automakers like Lucid Motors are using to chop prices and probably qualify for Federal tax credit. In the present day, Lucid introduced a provide chain settlement with Graphite One, touting it as a first-of-its-kind collaboration.
Lucid inks new provide settlement with Graphite One
Particulars of the non-binding provide settlement with Lucid got here from Graphite One, whose CEO Anthony Huston described as “historic,” as it’s the first artificial graphite settlement between a US graphite developer and a US-based EV firm.
The USA at the moment imports 100% of its pure and artificial graphite – a essential materials in BEV battery expertise. Graphite One is on a mission to cultivate that provide chain by tapping into the Graphite Creek deposit, acknowledged by the US Geological Survey as the biggest graphite deposit within the US and “among the many largest on this planet.”
This previous March, Graphite One selected Warren, Ohio, as the house of its incoming anode lively supplies (AAM) manufacturing facility, which has a “Section 1” manufacturing goal of 25,000 tons per 12 months (TPY) of battery-ready anode materials.
Because the supplies acquisition specialist revamps that current footprint for artificial graphite manufacturing, it has garnered a non-binding provide settlement from Lucid Motors, which seems to capitalize on that native provide. Per Lucid CEO and CTO Peter Rawlinson:
We’re dedicated to accelerating the transition to sustainable autos and the event of a sturdy home provide chain ensures america, and Lucid, will preserve expertise management on this international race. By work with companions like Graphite One, we may have entry to American-sourced essential uncooked supplies, serving to energy our award-winning autos made with delight in Arizona.
In line with Graphite One, the non-binding settlement with Lucid consists of the availability of 5,000 TPA of artificial graphite as soon as it begins manufacturing. The preliminary time period of the settlement is 5 years, however it’s topic to early termination. The businesses state that gross sales are based mostly on an agreed worth formulation linked to future market pricing in addition to satisfying base case pricing agreeable to each events.
Trying forward, Graphite One’s progress in commencing AAM manufacturing stays topic to undertaking financing and an current grant from the US Division of Protection. The corporate expects to generate income by 2027.
By sourcing extra battery supplies domestically, Lucid Motors has the chance to ship new BEV fashions that might qualify for the full $7,500 Federal tax credit score, though it should observe loads of different parameters, together with decrease MSRPs.
FTC: We use earnings incomes auto affiliate hyperlinks. Extra.
