Lucid Signs U.S. Graphite Supply Deal for EV Batteries
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Lucid Group has established a second agreement with Graphite One to source materials for lithium-ion batteries, marking a significant move to bolster its domestic supply chain. This announcement was made on June 4, 2025, in a press release.
The new agreement will enable Lucid and its battery cell suppliers to obtain natural graphite from the Graphite Creek deposit, located north of Nome, Alaska. Graphite One anticipates commencing production at this site in 2028. This deal builds on a previous agreement from 2024, in which Graphite One committed to supplying processed graphite for battery anodes, also set to begin in 2028. The active anode material (AAM) will be produced at Graphite One’s planned facility in Warren, Ohio.
As part of its strategy to navigate tariff uncertainties, Lucid has ramped up its production of U.S.-based battery-electric vehicles. Company executives have emphasized the importance of localizing critical supplies. This includes transitioning to Panasonic’s battery facility in Kansas and forming partnerships with Graphite One and Syrah Resources for domestic graphite sourcing. Starting next year, Syrah will begin supplying AAM from its production facility in Vidalia, Louisiana, under a three-year contract with Lucid.
According to Lucid’s interim CEO, Marc Winterhoff, “A supply chain of critical materials within the United States drives our nation’s economy, increases our independence against outside factors or market dynamics, and supports our efforts to reduce the carbon footprint of our vehicles.”
Building supplier networks for EV batteries has become a trend among both traditional automakers and electric vehicle manufacturers like Lucid. For instance, Nissan Motor Corp and SK On entered a battery agreement in March.
The prior agreement between Lucid and Graphite One is currently a non-binding supply agreement, contingent upon Graphite One initiating AAM graphite production at its Ohio facility, as detailed in the Canadian company’s recent Management’s Discussion and Analysis document.
If successful, the collaboration between Lucid and Graphite One will establish a U.S. source of graphite materials for EV batteries. However, a key player in this partnership is Hunan Chenyu Fuji New Energy Technology, an AAM manufacturer based in Changsha, China. Graphite One signed a technology licensing and consulting agreement with Chenyu last October. Under this agreement, Chenyu will assist in the design, construction, and operation of the Ohio facility, and will also receive quarterly royalties for its technology used in AAM manufacturing.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/lucid-expands-domestic-supply-chain-with-new-graphite-deal-for-ev-batteries/
