Agreement for potential US synthetic graphite supply to a US EV manufacturer 

US company, Graphite One has signed a non-binding supply agreement for active anode material for EV batteries with Lucid, which is a California-based company. Lucid is a car manufacturer focused on creating advanced and high-value EVs. The supply agreement would create a North American-based supply chain providing Lucid with 5ktpy, once Graphite One commences production of synthetic graphite. The initial term is for 5 years, subject to earlier termination. Sales are based on an agreed price formula linked to future market pricing as well as satisfying base case pricing agreeable to both parties.

Graphite One has completed a pre-feasibility study on its Graphite Creek mine project in Alaska in 2022 which was based on production of 53ktpy of graphite concentrate.  Production at the Graphite Creek Mine is slated for 2029, and last year the company was awarded US$37.5M Technology Investment Agreement Grant from the US Department of Defense to cover 50% of the feasibility study which is expected at the end of this year.  The new feasibility study is based on a throughput of 183ktpy of graphite concentrate and a mine life of 22 years.

The company is also planning a battery active anode material and recycling facility in Ohio, based on a brownfield site in Warren which was previously used for defence stockpiles. The advantage of this is that it is 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 25ktpy of battery-ready anode material, and land is available for follow-on phases to ramp to 100ktpy of production.

Initially, this plant will be a synthetic or artificial graphite finishing plant, followed by an artificial graphite production line and ultimately, a precursor material line for anodes. The other operation on the site will be coated spherical graphite (CSG) production using the Alaskan graphite concentrate as feedstock. This facility has a projected output of 41,850tpy battery grade CSG per year. The first phase of the project the artificial graphite finishing plant is due to be online in 2027.