RIYADH: Lucid Group, the electric vehicle manufacturer backed by 萝莉视频鈥檚 Public Investment Fund, has signed a multiyear supply agreement with Graphite One to source natural graphite from the US.
The move is aimed at reinforcing the company鈥檚 domestic supply chain for battery production. The agreement aligns with Lucid鈥檚 broader strategy to secure critical raw materials domestically.
It follows similar deals with Graphite One and Syrah Resources as the company ramps up efforts to localize its EV production ecosystem.
According to the terms, the graphite will be supplied through Lucid鈥檚 battery cell partners for use in upcoming vehicle models.
Lucid is majority-owned by PIF, which holds a 60 percent stake, amounting to 1.77 billion shares. The partnership underscores the sovereign fund鈥檚 long-term commitment to advancing electric mobility as part of 萝莉视频鈥檚 Vision 2030.
In September 2023, Lucid opened its first international manufacturing facility in King Abdullah Economic City. The plant currently produces 5,000 vehicles per year, with plans to scale up to 155,000 units annually. The expansion is expected to support 萝莉视频鈥檚 ambitions to diversify its economy and become a regional hub for electric vehicle manufacturing.
鈥淎 supply chain of critical materials within the United States drives our nation鈥檚 economy, increases our independence against outside factors or market dynamics, and supports our efforts to reduce the carbon footprint of our vehicles,鈥 said Marc Winterhoff, interim CEO at Lucid.
Under the latest deal, Lucid and its battery suppliers will begin receiving natural graphite from Graphite Creek, a deposit located near Nome, Alaska, starting in 2028. This builds on a prior agreement signed in 2024, in which Graphite One will provide synthetic graphite from its proposed anode materials facility in Warren, Ohio 鈥 also set to begin production in 2028.
鈥淭his agreement complements the deal we struck with Lucid in 2024 鈥 which marked the first synthetic graphite agreement between a US graphite developer and a US EV company,鈥 said Anthony Huston, CEO of Graphite One.
He added: 鈥淲e made history then 鈥 and we鈥檙e 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.鈥
Lucid is also expected to receive natural graphite active anode material from Syrah Resources starting in 2026, as part of its ongoing diversification of supply sources.
In a further boost to its financial position, Lucid closed a $1.1 billion offering of convertible senior notes in April, due in 2030. The announcement came shortly after the company reported first-quarter deliveries of 3,109 vehicles 鈥 a 58 percent increase year on year.