Lucid Group Inc. has signed a multi-year supply agreement with Graphite One Inc. to source Alaska’s natural graphite anode active material for its electric vehicle batteries, the companies announced Tuesday.
The announcement marks another step by Lucid to reinforce its domestic supply chain amid a global push for critical mineral independence from China.
“These agreements could lead to long lasting investment in Alaska. Alaska has the largest graphite find in North America and some of the largest in the entire world. This is good news for a great state,” said Gov. Mike Dunleavy.
In a move that reflects the Trump Administration’s renewed focus on American mineral independence and energy security, the announcement came as Lucid Motors representatives were in Anchorage for the Alaska Sustainable Energy Conference, where over 1,000 business and government officials are meeting this week to jumpstart the Alaska resource-based economy.
On Tuesday it was announced that the Graphite One project has been placed on the White House fast-track program for permitting. See this story exclusively from Must Read Alaska:
The graphite material for Lucid will come from Graphite One’s Graphite Creek deposit located near Nome, recognized by the US Geological Survey as the largest known graphite deposit in the country. Processing will take place at Graphite One’s proposed advanced manufacturing facility in Warren, Ohio, with production expected to begin in 2028.
Bering Straits Native Corp. is strategic investment partner in Graphite One to help us advance the Graphite Creek Project.
The agreement follows earlier deals between Lucid and Graphite One in 2024 for synthetic graphite, as well as a separate agreement with a natural graphite processor in Louisiana.
“This supply deal is consistent with our commitment to building a resilient and secure supply chain that supports the long-term success of our vehicles,” Lucid said I’m a statement.
Lucid’s flagship luxury sedan, the Lucid Air, and its upcoming Lucid Gravity SUV rely on high-performance lithium-ion batteries that require advanced graphite-based anodes. The California-based EV maker has positioned itself at the forefront of the market with best-in-class range and efficiency, while continuing to ramp up production at its vertically integrated factory in Arizona.
The agreement outlines an initial supply of up to 5,000 tonnes per annum of natural graphite material, once Graphite One commences production. The initial term is five years, subject to early termination and standard commercial conditions. Pricing will be based on a market-linked formula, rather than fixed rates, allowing flexibility amid fluctuating raw material costs.
The deal remains contingent on several factors, including successful project financing and the launch of commercial production.
Graphite One aims to develop a fully integrated domestic supply chain for graphite, a material for which the United States is currently 100 percent import-dependent. The company’s Graphite One Project envisions a circular, vertically integrated production model, from mining at Graphite Creek, to processing in Alaska, to final anode manufacturing in Ohio.
The proposed Ohio facility will not only produce advanced battery materials but also include a recycling operation to reclaim graphite and other battery minerals—positioning Graphite One as a key player in sustainable materials sourcing.
Lucid Group Inc. is a California-based technology company focused on developing high-performance electric vehicles. The Lucid Air, starting at $69,900, has won numerous industry accolades, including MotorTrend’s 2022 Car of the Year and Car and Driver’s 10 Best. Lucid is preparing to launch the Lucid Gravity SUV later this year.
Graphite One Inc. is advancing the development of the Graphite One Project, aimed at becoming America’s first vertically integrated producer of natural and synthetic graphite materials for the EV battery market. The company plans to make a final investment decision following the completion of its feasibility study.
I wouldn’t count on this one.
Everyone with any sense knows that all-battery-powered vehicles (so-called “electric vehicles”) are an economic, political and environmental dead-end.