Lucid to Buy US-Made EV Batteries from Panasonic

Battery Supply Chain & Localization - Lucid initially sourced battery supplies from Japan and Korea, but has since invested in localizing production with Panasonic in the US [1] - The collaboration with Panasonic involves co-engineering to optimize battery cell performance based on Lucid's real-world experience and Panasonic's chemistry expertise [2] - Localizing the supply chain, including raw materials like graphite, is crucial to mitigate the impact of tariffs [6][7] - The company is working on further localizing the supply chain for battery cells to avoid tariffs on imported raw materials [6] Production & Scaling - Lucid is ramping up production of the Gravity model and expects significantly higher numbers than in the past [9] - The company aims to reach 20,000 vehicles this year, with efforts focused on resolving supply chain bottlenecks and optimizing plant operations [9][14][16] - The mid-size platform, targeting a $50,000 price range, is on track for next year and is expected to be a key inflection point for volume scaling [8][9][16] - The de plant will supply cells for vehicles sold or delivered starting next year [10] Market Position & Strategy - Lucid Air is the best-selling EV in its segment in the United States, even outperforming ICE vehicles at the beginning of the year [12] - The company is primarily appealing to the higher price segment, as achieving economies of scale in automotive manufacturing is a long-term process [14][15] - Lucid is experiencing increased interest from potential partners motivated by the effort to onshore industry in the US [19] - Lucid is seeing increased interest from Tesla owners [23] External Factors & Challenges - Tariffs increase costs and necessitate rethinking the supply chain, prompting localization efforts [5][25] - The company is less impacted by cost increases compared to other players because it builds everything in the United States [26] - The company believes that vehicles will become more expensive for American consumers under the tariff regime [28]