Progress towards a domestic US supply chain for advanced graphite materials marched forward on Thursday with the announcement of a supply agreement between Graphite One and California-based electric vehicle (EV) maker Lucid Group.

With the US currently 100% dependent for synthetic and natural graphite, Graphite One is developing a complete US-based, advanced graphite supply chain solution anchored by the Graphite Creek deposit, which the US Geological Survey recognises as the biggest in the country.

The Graphite One project plan includes building an advanced graphite material and battery anode material manufacturing plant located in Warren, Ohio, as well as a recycling facility to reclaim graphite and the other battery materials, to be co-located at the Ohio site.

The supply agreement with Lucid follows the March selection of the Warren site as the proposed location for the anode active materials (AAM) facility. The site was previously used for the storage of National Defense stockpile critical minerals by the US government and is located in the heart of the automobile industry, in an area with ample low-cost electricity produced from renewable-energy sources.

The site’s existing power lines are sufficient for Graphite One’s Phase 1 production target of 25 000 t/y of battery-ready anode material, and land is available for follow-on phases to ramp up to 100 000 t/y of production.

The supply agreement with Lucid, which is still nonbinding, provides for 5 000 t/y once Graphite One starts production of synthetic graphite. The initial term is for five years, subject to earlier termination.

"This is a historic moment for Graphite One, Lucid and North America: the first synthetic graphite supply agreement between a US graphite developer and US EV company," said Graphite One president and CEO Anthony Huston.

"Subject to project financing required to build the AAM facility, the supply agreement with Lucid puts Graphite One on the path to produce revenue in 2027, and that's just the beginning for Graphite One as work to meet market demands and create a secure 100%-US-based supply chain for natural and synthetic graphite for US industry and national security,” he added.