The U.S. electric vehicle (EV) industry is set to witness a transformative shift with the announcement of a non-binding supply agreement between Graphite One Inc. and Lucid Group Inc. for anode active materials (AAM). This collaboration is the first of its kind between a U.S. graphite developer and a U.S. EV company, aiming to reduce the nation's reliance on foreign sources for critical battery materials.
Under the agreement, Graphite One will supply 5,000 tonnes of anode material annually to Lucid, with an initial term of five years. This partnership not only underscores the importance of developing a domestic supply chain but also highlights the strategic efforts to secure the U.S. position in the global EV market. Currently, the U.S. imports 100% of its synthetic and natural graphite, a dependency Graphite One seeks to eliminate through its comprehensive domestic supply chain plan.
Peter Rawlinson, CEO and CTO at Lucid, emphasized the significance of this agreement in advancing sustainable vehicle production and bolstering the domestic supply chain. Anthony Huston, President and CEO of Graphite One, hailed the agreement as a historic milestone for North America, reflecting on the company's progress towards establishing a 100% U.S.-based supply chain.
Graphite One's strategic initiatives include the development of a brownfield site in Warren, Ohio, for its proposed AAM facility, leveraging the location's proximity to the automobile industry and access to renewable energy. The company's vision extends to creating a circular economy through mining, processing, and recycling graphite and other battery materials, supported by significant government grants.
This agreement between Graphite One and Lucid Motors is a critical step towards addressing the immediate and long-term challenges of the EV industry's supply chain, promising to enhance the U.S.'s competitiveness and sustainability in the global market.
