PIF-backed Lucid inks graphite supply deal to bolster US EV battery material sourcing
RIYADH: Saudi Public Investment Fund-backed Lucid Group has signed a multi-year supply agreement with Graphite One to procure US-sourced natural carbon, further reinforcing its localized supply chain for electric vehicle production.
The company, of which PIF is the majority owner with 1.77 billion shares, has inked the deal as part of its broader strategy to bolster access to critical raw materials sourced domestically, following similar supply arrangements with Graphite One and Syrah Resources.
The materials will be utilized in future Lucid vehicles via directed supply agreements with the company's battery cell suppliers.
'A supply chain of critical materials within the United States drives our nation's economy, increases our independence against outside factors or market dynamics, and supports our efforts to reduce the carbon footprint of our vehicles,' said Marc Winterhoff, interim CEO at Lucid.
The newly signed agreement will see Lucid and its battery partners receive natural graphite extracted from the Graphite Creek deposit near Nome, Alaska, with production expected to commence in 2028.
It builds on a 2024 deal with Graphite One, under which Lucid will receive synthetic graphite from the company's proposed active anode material facility in Warren, Ohio, also set to begin production in 2028.
'This agreement complements the deal we struck with Lucid in 2024 – which marked the first synthetic graphite agreement between a US graphite developer and a US EV company,' said Anthony Huston, CEO of Graphite One.
He continued: 'We made history then – and we're continuing to make history now as we build momentum for our efforts to develop a fully domestic graphite supply chain, to meet market demands and strengthen US industry and national defense.'
Lucid is also set to receive natural graphite active anode material from Syrah Resources beginning in 2026.
In April, the company closed a $1.1 billion offering of convertible senior notes due in 2030, just days after it reported first-quarter deliveries of 3,109 vehicles — a 58 percent increase from the same period last year.
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