Lucid Motors has entered into a binding purchase agreement with Syrah Resources, an Australian-based raw materials company, for the supply of graphite to be used as an active anode material in its battery cells. The graphite will be sourced from Syrah’s U.S. production facility located in Vidalia, Louisiana.
Under the contract, Lucid will acquire approximately 7,000 tonnes of natural graphite over a three-year period beginning in 2026. The agreement utilizes a ‘floating price mechanism’ based on an index for natural flake graphite, meaning the financial terms of the deal have yet to be finalized.
Lucid Motors will integrate the supplied graphite into its battery cells rather than processing the material in-house. Syrah Resources highlighted that Lucid maintains supply relationships with several Tier 1 lithium-ion battery manufacturers in the United States. The qualification processes for Syrah’s Vidalia plant are reportedly well-advanced with these manufacturers.
Currently, Lucid sources battery cells for its Air electric sedan and the new Gravity SUV primarily from Panasonic. Until 2023, the company also procured cylindrical cells from LG. Syrah’s U.S. facility is situated near the Mississippi River, and Panasonic continues to produce battery cells for Lucid at its Japanese plant. Lucid plans to receive supplies from Syrah’s newly established U.S. plant in De Soto, Kansas, once production is scaled up.
Lucid primarily manufactures its vehicles at its main plant in Casa Grande, Arizona, and operates a factory in Saudi Arabia, where prefabricated vehicle kits are assembled in Arizona.
This agreement with Syrah Resources marks another raw material purchase for Lucid. In July 2024, the company secured a deal to purchase 5,000 tonnes per year from Graphite One, contingent upon the supplier beginning production of synthetic graphite.
Syrah Resources is an established supplier within the automotive sector, having previously secured graphite orders from Tesla in 2021.
Source: Electrive
