Supply chain localization

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Lucid Flags Tariff-Driven Price Surge, Localizes Battery Sourcing
ZACKS· 2025-07-16 16:36
Industry Overview - The U.S. automotive industry is expected to see a rise in vehicle costs due to tariff policies implemented by the Trump administration, particularly a 25% duty on non-American content, which will affect pricing across the board [1][7] - Automakers heavily rely on global imports of key materials such as graphite, lithium, and semiconductors, making the industry vulnerable to disruptions caused by tariffs [2][7] Company Specifics - Lucid Group is actively working to localize its supply chain to mitigate costs, particularly focusing on battery material sourcing through a new deal with Graphite One for U.S.-processed graphite [3][7] - The partnership with Panasonic for battery production will be delayed until at least 2026, impacting Lucid's ability to offset tariff burdens in the short term [3][7] - Over the past year, Lucid's shares have declined by 38.6%, significantly underperforming the industry average decline of 2.3% [5]
Lucid Strengthens US Supply Chain with New Graphite Material Supply Agreement with Graphite One
Prnewswire· 2025-06-04 13:00
Core Viewpoint - Lucid Group has signed a multi-year supply agreement with Graphite One for American-sourced natural graphite, enhancing its supply chain for raw materials and resources sourced in the United States [1][2] Group 1: Supply Agreements - The agreement with Graphite One will provide natural graphite starting in 2028, sourced from the Graphite Creek deposit in Alaska [2][3] - This deal builds on a previous agreement with Graphite One for synthetic graphite, also set to begin in 2028, sourced from an active anode material facility in Warren, Ohio [2][4] - Syrah Resources will supply natural graphite AAM to Lucid starting in 2026, sourced from its facility in Vidalia, Louisiana [3][4] Group 2: Strategic Importance - The partnerships are aimed at strengthening the U.S.-based supply chain for critical minerals, which are essential for lithium-ion batteries and fast-charging performance [4] - The agreements reflect Lucid's commitment to American innovation and manufacturing, promoting localized supply chains to enhance economic independence and reduce carbon footprints [2][4] Group 3: Company Overview - Lucid Group is focused on creating advanced electric vehicles, with notable models including the award-winning Lucid Air and the new Lucid Gravity [5] - The company operates a vertically integrated factory in Arizona, emphasizing its commitment to industry-leading technology and innovations in the EV sector [5]