Lucid sourcing graphite materials for battery production in the US

Lucid Group has signed an agreement with Graphite One to buy raw graphite materials and build a supply chain in the US for battery manufacturing at its Arizona facility.

This is a non-binding supply agreement for anode active materials (AAM). The initial term is set for 5 years but it could be terminated earlier depending on the various scenarios. The contract price is also based on the discussion between the two companies.

Graphite is used as a primary active material in the lithium-ion anode batteries used in EVs. Its layered structure enables insertion and de-insertion during charging and discharging. This process ensures the storage and release of electrical energy.

This material serves as a high-capacity storage for lithium ions, which improves energy density. Graphite supports fast charging without affecting battery cells and helps to improve the overall experience.

In tests, Graphite has been found stable and durable for long charge cycles. It can withstand numerous charge-discharge cycles without major degradation. Above all, this material provides greater safety and prevents lithium dendrite formation.

In March this year, Graphite One announced Ohio’s Voltage Valley to build a graphite anode manufacturing plant. The land lease agreement is signed for a 50-year term.

Located in Niles, Ohio, the site was previously used for national defense stockpile critical minerals storage by the U.S. government. The site is expected to produce 25,000 tons per year (tpy) under phase 1 production. An expansion will allow the company to increase up to 100,000 tpy.

The company will employ 160 local residents and the initial capital cost is estimated at $435 million. Graphite One aims to commence the construction for Ohio facility within 36 months.

Meanwhile, Lucid is yet to share details about the material supply use.

“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,” said Peter Rawlinson, CEO and CTO at Lucid.

(source – GraphiteOne)