(Bloomberg) —
Automaker Lucid Group Inc. signed a third agreement for US-processed graphite, extending its bid for domestic supplies of an essential component in its electric vehicle batteries.
The agreement with Vancouver-based Graphite One Inc. helps further integrate a domestic supply chain for components in Lucid’s lineup, including an electric sedan and an SUV, potentially blunting the effects of new and threatened tariffs.
It also ensures certainty of demand, which Marc Winterhoff, Lucid’s interim chief executive officer, sees as essential to building a US graphite industry.
The automotive industry can provide the “critical scale that you need to make those mines profitable,” Winterhoff told Bloomberg. “We need so much of it.”
Lucid’s push for US graphite supply began before President Donald Trump was inaugurated in January and began pursuing widespread tariffs. Even so, Winterhoff said, it strengthens the company’s resilience in the face of the levies.
The deal was highlighted at Alaska Governor Mike Dunleavy’s energy summit in Anchorage. Graphite One aims to mine graphite north of Nome, Alaska and process it in Ohio.
The multi-year agreement to supply Lucid and its battery cell providers with natural graphite comes on top of a 2024 deal the two companies inked for a synthetic form of the material set to be produced at a facility in Ohio.
Under a third agreement, Syrah Resources is set to supply natural graphite active anode material to Lucid, with foreign material processed in Louisiana.
Graphite One CEO Anthony Huston said in the statement that the agreement would build momentum for domestic development that can “strengthen US industry and national defense.”
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