TLDR
- Lucid Group (LCID) signed multi-year graphite supply agreements with Graphite One and Syrah Resources to secure domestic battery materials
- Graphite One will supply natural graphite starting in 2028 from Alaska mining operations processed in Ohio
- Syrah Resources will provide synthetic graphite beginning in 2026, adding to Lucid’s supply chain diversification
- The deals aim to reduce dependence on Chinese critical materials following China’s rare earth export restrictions
- Lucid’s supply chain strategy focuses on U.S.-based sourcing to mitigate geopolitical supply risks
Lucid Group has finalized agreements with two companies to secure domestic graphite supplies for its electric vehicle battery production. The deals represent a strategic move to reduce reliance on Chinese materials.
Today we have announced a new multi-year supply agreement with Graphite One for American-sourced natural graphite, further localizing our supply chain for raw materials and resources.
As one of several recent agreements, this means batteries in Lucid vehicles will increasingly… pic.twitter.com/6Q87zdeXn2
— Lucid Motors (@LucidMotors) June 4, 2025
The electric vehicle manufacturer signed a multi-year agreement with Vancouver-based Graphite One. This company plans to mine graphite in Alaska and process it at facilities in Ohio.
Graphite One will begin supplying natural graphite to Lucid and its battery suppliers starting in 2028. The timeline aligns with the mining company’s planned production schedule.
Lucid also reached a separate agreement with Syrah Resources for synthetic graphite supplies. This partnership will begin deliveries in 2026, two years earlier than the Graphite One arrangement.
“We need so much of it,” said interim CEO Marc Winterhoff, referring to graphite’s role in EV batteries. The executive emphasized that demand certainty helps make U.S. graphite mining operations viable.
The supply agreements follow China’s recent restrictions on rare earth material exports. These restrictions have created supply chain challenges for global automakers who depend on Chinese-sourced critical materials.
Strategic Supply Chain Positioning
Lucid’s approach involves building relationships with multiple suppliers across different graphite types. The company previously secured agreements for foreign-sourced material refined in Louisiana.
These three deals create what the company calls a U.S.-centric battery supply chain. The strategy reduces exposure to geopolitical tensions between Washington and Beijing.
Winterhoff told Bloomberg that the auto industry might have enough scale to unlock viable U.S. graphite mining operations. Large-volume commitments from automakers provide the demand certainty miners need.
Tesla CEO Elon Musk has also highlighted the importance of domestic supply chains. The Tesla chief said local sourcing helps mitigate geopolitical risks for electric vehicle production.
Trade tensions between the U.S. and China have escalated in recent months. The Trump administration has accused Beijing of violating trade agreements, which China denies.
Market Response and Industry Impact
Graphite One CEO Anthony Huston called the Lucid agreement a step toward strengthening U.S. industry and national defense capabilities. The partnership addresses growing concerns about critical material security.
Lucid’s supply chain realignment began before recent tariff discussions gained momentum. However, the timing now appears well-positioned for potential trade policy changes.
The company plans to showcase the Graphite One partnership at this week’s Alaska Governor’s Energy Summit. Battery minerals are expected to be a central topic at the event.
Lucid’s vertical integration strategy could appeal to investors focused on long-term resilience in the EV sector. Supply chain security has become a key consideration for electric vehicle manufacturers.
The agreements represent Lucid’s third major graphite supply deal. This diversified approach spreads risk across multiple suppliers and geographic regions.
Battery input costs and energy security concerns continue to influence EV industry decisions. Lucid’s domestic sourcing strategy addresses both economic and strategic considerations.
The graphite supply deals will begin delivering materials in 2026 with Syrah Resources, followed by Graphite One supplies starting in 2028.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
