Lucid Motors Partners With Graphite One to Boost Local BEV Supply Chain, Eyes Tax Credits and Lower Costs
Lucid Motors, an American innovator in battery electric vehicles (BEV), has recently signed a pivotal non-binding supply agreement with Graphite One, marking a significant step towards enhancing the domestic sourcing of critical BEV components. This partnership focuses on the incorporation of synthetic anode active materials from Graphite One into the supply chain of Lucid Motors.
Based in California, Lucid Motors has been at the forefront of electric vehicle technology with its acclaimed Air sedan and is gearing up for the mass production of its all-electric SUV, the Gravity, along with a new, more affordable model known as the “Mid-size.” These developments are aligned with the company’s strategic goals to boost efficiency and reduce production costs.
Graphite One, on the other hand, operates the Graphite Creek deposit in the U.S., which is recognized as the largest domestic graphite deposit and ranks among the top globally. They have announced plans to build a manufacturing facility in Warren, Ohio, aimed at producing anode active materials (AAM) with a projected Phase 1 capacity of 25,000 tons per year by 2027. This endeavor relies on securing project financing and a potential grant from the US Department of Defense.
The newly forged agreement involves Graphite One supplying Lucid Motors with 5,000 tons per annum of synthetic graphite, vital for the lithium-ion batteries used in BEVs, starting once production is online. The initial term of the agreement spans five years and includes clauses for early termination. The pricing strategy will adhere to future market trends and a base case scenario mutually agreed upon by both companies.
Anthony Huston, CEO of Graphite One, hailed the agreement as “historic,” noting it as the first of its kind between a U.S. graphite developer and a U.S.-based EV company. This agreement represents a strategic move to reduce the reliance on imported graphite, crucial for the battery technology in BEVs.
Peter Rawlinson, CEO and CTO of Lucid Motors, echoed the strategic importance of this partnership. “We are committed to accelerating the transition to sustainable vehicles and the development of a robust domestic supply chain ensures the United States, and Lucid, will maintain technology leadership in this global race. 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,” stated Rawlinson.
By strengthening its supply chain domestically, Lucid Motors not only aims to reduce costs but also aligns itself with federal policies that could offer a $7,500 tax credit per vehicle, contingent on meeting specific criteria regarding local sourcing and manufacturing.
This collaboration between Lucid Motors and Graphite One not only underscores the growing trend of localizing supply chains in the automotive industry but also positions both companies to capitalize on federal incentives, while propelling forward the momentum towards sustainable vehicle solutions. As these developments unfold, they promise significant impacts on the pricing, availability, and technological advancement of BEVs in the U.S., leveraging local resources to meet global challenges.
