Senators Offer Strong Support for Graphite One and Lucid Deal

Graphite One Inc. (TSXV: GPH) (OTCQX: GPHOF) recently took part in a briefing held at the U.S. Capitol on July 25, 2024, announcing a non-binding supply agreement with Lucid Group Inc. (NASDAQ: LCID), maker of the world’s most advanced electric vehicles. The supply agreement is for anode active materials (AAM) and is a notable development for Graphite One (G1). Securing a supply agreement with a high-profile company like Lucid boosts G1’s credibility and provides reassurance to stakeholders.

G1 is planning a complete domestic U.S. supply chain for advanced graphite materials and this agreement marks the first step in its ambition to create a 100% U.S.-based supply chain linking Alaska, Ohio and Arizona.

Senators and Members of the House of Representatives emphasized the importance of the Graphite One-Lucid agreement:

Senator Lisa Murkowski (R-AK) who has long been a strong supporter of Graphite One’s efforts in Alaska, said:

I’m pleased that Graphite One and Lucid Motors are partnering to create a domestic supply chain for electric vehicles made in America from materials mined in Alaska,

These companies represent the start and the end of the supply chain, and they have the right vision to help strengthen our economy, our competitiveness, our security, and our commitment to true sustainability. Graphite One is an excellent example of responsible resource development in Alaska, and this new partnership with Lucid only further solidifies their leadership.

Senator Dan Sullivan (R-AK) observed:

Graphite One’s partnership with Lucid Motors is a positive step towards opening up opportunities in Alaska to develop our abundant reserves of critical minerals and metals like graphite,

It’s also significant for our country’s national security: We must end America’s dangerous dependence on China for critical minerals, which are increasingly necessary for alternative energy sources, advanced batteries, and defense technologies. Alaska can and will lead the way in unleashing America’s resource potential.

Congresswoman for Alaska, Mary Peltola (D-AK), commented:

I have always said that it is best to develop minerals and resources at home instead of relying on international and often adversarial supply lines. I am thrilled that Lucid has partnered with Graphite One to supply graphite for their cars,

I hope they will continue to look to Alaska for minerals as we develop a robust and secure domestic supply chain to power our future.

Congressman Dave Joyce (R-OH), said:

With manufacturing being one of Ohio’s largest economic drivers, I was proud to see Niles, Ohio chosen for Graphite One’s new advanced graphite production site. This new project will bring over 160 jobs to my district and spur even more economic growth in the area,

By combining the resources from the new Ohio facility with the natural graphite mined in Alaska for Lucid’s cars manufactured in Arizona, we are showcasing the importance of developing critical mineral supply on American soil. I look forward to seeing the success of this project in Ohio and across the country.

Congressman Juan Ciscomani (R-AZ), stated:

My district is home to Lucid Motor’s state-of-the-art manufacturing facility,

The partnership between Lucid Motors and Graphite One will strengthen our economy, bolster our domestic supply chain of critical minerals, and reduce our reliance on foreign entities for the materials needed to build electric vehicles.

Securing a reliable supply of American-mined graphite will lower costs, drive innovation, and ensure Arizona remains a leader in the electric vehicle industry.

Support for the Graphite One-Lucid agreement in Alaska spans from the Governor to the Bering Straits Native Corporation, representing over 8,200 Native Alaskan shareholders and managing a subsurface estate of about 2.1 million acres.

Alaska Governor Mike Dunleavy said:

I am delighted to see Alaska’s role in the announcement on Capitol Hill today that Graphite One, developer of the Graphite Creek Project, and Lucid Motors of Arizona have reached agreement on an offtake contract providing U.S.-made graphite anode material for U.S.-built electric vehicles – one major use of the rechargeable batteries that are transforming American technology and the U.S. economy.

Dan Graham, CEO of Bering Straits Native Corporation, an investor in Graphite One, commented: 

This is the outcome of on-going hard work with great partners that will help transform America’s energy future,

This project will strengthen national security and create not only a new domestic supply of graphite but the opportunity for new jobs and economic growth across the US. BSNC is proud to be a part of it.

Advancing U.S. Critical Mineral Collaborations for Battery Production

The United States is fully dependent on imports for synthetic and natural graphite. Graphite One is addressing this with its domestic supply chain strategy to develop a U.S.-based graphite supply chain, centered on the Graphite Creek deposit, the largest in the U.S. and among the largest globally¹. The second link in its plan is a manufacturing plant for advanced graphite and battery anode materials in Warren, Ohio. A recycling facility at the same location, forms the third link in Graphite One’s circular economy strategy.

Discover more about Graphite One’s plans to transform the U.S. graphite industry.

About Lucid Motors

California-based Lucid Group is focused on creating the world’s most advanced electric vehicles. The company’s flagship vehicle, Lucid Air, delivers best-in-class performance and efficiency starting at $69,900 and has been recognized with a number of leading awards, including MotorTrend 2022 Car of the Year, World Luxury Car of the Year, and Car and Driver 10 Best.

Lucid is preparing its state-of-the-art, vertically integrated factory in Arizona to begin production of the Lucid Gravity SUV.

About Graphite One

With the plan to create three integrated operational pillars, Graphite One continues to develop its Graphite One Project to become an American producer of high-grade anode materials integrated with a domestic graphite resource. It is anticipated that G1 will primarily supply the U.S. lithium-ion EV battery market and energy storage systems.

Graphite One's 2022 Pre-Feasibility Study² outlines that graphite mineralization mined from its Graphite Creek Property in Alaska will be processed into concentrate at a nearby plant. This concentrate and other materials will then be used to manufacture graphite products at a proposed facility in northeastern Ohio. Graphite One intends to make a production decision on the project upon the completion of its feasibility study.

The powerful backing of the United States Government validates G1's ambitious plans. In addition to a White House invitation, G1 has already received two government grants from the Department of Defense (DoD).

1. The first grant is an exceptional $37.5 million towards its feasibility study³.

2. The second is an impressive $4.7 million to develop a graphite-based foam fire suppressant⁴.

Better still, substantial Federal support for the industry continues, which G1 plans to also tap into⁵.

Graphite One's triple-faceted domestic supply chain solution is strategically designed to reduce U.S. dependency on China for graphite. With its forward-thinking approach, Graphite One is not just planning to meet current market demands but also anticipating the future needs of a tech-driven world. Its high-quality graphite materials are anticipated to meet the growing demands of electrification, catalyze sustainable development, and pave the way for the next generation of technological breakthroughs.

G1’s management team excels in mine construction, process control design, and facility management. Their extensive expertise ensures efficient operations and a commitment to cost efficiency to maximize profitability. Graphite One has assembled a team of individuals who are not just capable but are ready to drive business growth and deliver enduring value to stakeholders over the long term.