Graphite One and Lucid Enter into Second Non-Binding Supply Agreement

Core Viewpoint - Graphite One Inc. has entered into a non-binding supply agreement with Lucid Group, Inc. for natural graphite anode active materials, complementing a previous agreement for synthetic graphite, positioning the company as the only provider of both materials to a U.S. electric vehicle manufacturer [1][2][3]. Group 1: Supply Agreement Details - The new supply agreement focuses on natural graphite anode active materials to be supplied to Lucid and its battery cell suppliers for future vehicles [2]. - The agreement is non-binding and will commence once Graphite One begins production of natural graphite, with an initial term of five years [5]. - Sales under the agreement will be based on a mutually agreeable price formula, with standard terms and conditions applicable [5]. Group 2: Strategic Importance - This agreement is part of Graphite One's strategy to build a complete U.S. supply chain for advanced graphite materials, enhancing domestic production capabilities [1][3]. - The company aims to address the current 100% import dependency of the U.S. on synthetic and natural graphite by developing a domestic supply chain anchored by the Graphite Creek deposit in Alaska [8]. - The feasibility study completed by Graphite One showed a tripling of the company's proven and probable reserves, indicating strong potential for future production [3]. Group 3: Industry Context - The partnership with Lucid is seen as a significant step towards increasing U.S. independence in critical material supply chains, which is essential for the economy and reducing the carbon footprint of vehicles [3]. - Graphite One's plans include constructing a manufacturing facility in Warren, Ohio, and a recycling facility to reclaim graphite and other battery materials, supporting a circular economy strategy [8].