Graphite One and Lucid Enter into Non-Binding Supply Agreement Graphite One-Lucid agreement involves Synthetic Anode Active Materials Graphite One CEO Anthony Huston : This is " a historic moment…: The first synthetic graphite agreement between
Graphite One and Lucid Enter into Non-Binding Supply
Agreement
Graphite One-Lucid agreement involves Synthetic Anode Active Materials
Graphite One CEO
Anthony Huston
: This is "
a historic moment…: The first synthetic graphite agreement between
a U.S. graphite developer and a U.S. EV company"
Lucid CEO
Peter Rawlinson
: "We are committed to accelerating the transition to sustainable vehicles and the
development of a robust domestic supply chain ensures
the United States
, and Lucid, will maintain technology
leadership in this global race
"
VANCOUVER, BC
,
July 25, 2024
/CNW/ -
Graphite One Inc.
(TSXV: GPH) (OTCQX: GPHOF)
("Graphite One", "G1" or
the "Company"),
planning a complete domestic U.S. supply chain for advanced graphite materials, announced today that it
has entered into a non-binding supply agreement (the "
Supply Agreement
") with Lucid Group, Inc. (NASDAQ: LCID)
("
Lucid
"), maker of the world's most advanced electric vehicles, for anode active materials ("
AAM
").
"We are committed to accelerating the transition to sustainable vehicles and the development of a robust domestic supply
chain ensures
the United States
, and Lucid, will maintain technology leadership in this global race," said
Peter Rawlinson
,
CEO and CTO at Lucid. "Through work with partners like Graphite One, we will have access to American-sourced critical
raw materials, helping power our award-winning vehicles made with pride in
Arizona
."
"This is a historic moment for Graphite One, Lucid and
North America
: the first synthetic graphite Supply Agreement
between a U.S. graphite developer and U.S. EV company," said
Anthony Huston
, President and CEO of Graphite One. "G1
is excited to continue pushing forward developing our 100% U.S. domestic supply chain. We appreciate the support from our
investors and the grant from the Department of Defense. Subject to project financing required to build the AAM facility, the
Supply Agreement with Lucid puts G1 on the path to produce revenue in 2027, and that's just the beginning for Graphite One
as work to meet market demands and create a secure 100% U.S.-based supply chain for natural and synthetic graphite for
U.S. industry and national security."
The Supply Agreement follows Graphite One's selection in March of this year of a site for the Company's proposed AAM
facility. The location, a brownfield site in
Warren, Ohio
previously used for storage of National Defense Stockpile critical
minerals by the U.S. Government, is located in the heart of the automobile industry, 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 25,000 tonnes per year ("
tpy
") of battery-ready anode material, and land is available for follow-on
phases to ramp to 100,000 tpy of production.
Lucid is a
California
-based technology company focused on creating the most advanced EVs in the world. 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.
Terms of the Supply Agreement
The Supply Agreement is non-binding providing for 5,000 tpa 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. The Supply Agreement is subject to
other terms, conditions and termination rights standard for an agreement of this nature.
Graphite One's Domestic Supply Chain Strategy
With
the United States
currently 100 percent import dependent for synthetic and natural graphite, Graphite One is developing
a complete U.S.-based, advanced graphite supply chain solution anchored by the Graphite Creek deposit, recognized by the
US Geological Survey as the largest graphite deposit in the U.S. "and among the largest in the world." The Graphite One
Project plan includes building an advanced graphite material and battery anode material manufacturing plant located in
Warren, Ohio
. The plan also includes a recycling facility to reclaim graphite and the other battery materials, to be co-located
at the
Ohio
site, the third link in Graphite One's circular economy strategy.
About Graphite One Inc.
GRAPHITE ONE INC. continues to develop its Graphite One Project (the "
Project
") to become an American producer of
high-grade anode materials that is integrated with a domestic graphite resource. The Project is proposed as a vertically
integrated enterprise to mine, process and manufacture anode active materials primarily for the lithium
ion electric vehicle
battery market. As set forth in the Company's 2022 Pre-Feasibility Study, graphite mineralization mined from the Company's
Graphite Creek Property, situated on the
Seward Peninsula
about 60 kilometers north of
Nome, Alaska
, would be processed
into concentrate at an adjacent processing plant. Natural and artificial graphite anode active materials and other value
added
graphite products would be manufactured from the concentrate and other materials at the Company's proposed advanced
graphite materials manufacturing facility located in northeastern
Ohio
. The Company intends to make a production decision
on the Project upon the completion of a Feasibility Study.
On Behalf of the Board of Directors
"Anthony Huston" (signed)
On Twitter @GraphiteOne
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
All statements in this release, other than statements of historical facts, including those related to entering into binding
arrangements between Lucid and Graphite One, the anticipated benefits of the relationship between Lucid and Graphite
One., timing and completion of the anticipated Feasibility Study, future production, establishment of a processing plant and
a graphite manufacturing plant, completion of project financing, establishment of a battery materials recycling facility, and
events or developments that the Company intends, expects, plans, or proposes are forward-looking statements. Generally,
forward
looking information can be identified by the use of forward
looking terminology such as "proposes", "expects", "is
expected", "scheduled", "estimates", "projects", "plans", "is planning", "intends", "assumes", "believes", "indicates", "to be"
or variations of such words and phrases that state that certain actions, events or results "may", "could", "would", "might" or
"will be taken", "occur" or "be achieved". The Company cautions that there is no certainty that the Company will enter into a
definitive agreement with Lucid. Although the Company believes the expectations expressed in such forward-looking
statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual
results or developments may differ materially from those in the forward-looking statements. Factors that could cause
actual results to differ materially from those in forward-looking statements include market prices, exploitation and
exploration successes, continuity of mineralization, uncertainties related to the ability to obtain necessary permits, licenses
and title and delays due to third party opposition, changes in government policies regarding mining and natural resource
exploration and exploitation, and continued availability of capital and financing, and general economic, market or business
conditions. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the
date it is expressed in this press release, and the Company undertakes no obligation to update publicly or revise any
forward-looking information, except as required by applicable securities laws. For more information on the Company,
investors should review the Company's continuous disclosure filings that are available at
www.sedarplus.ca
.
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For further information:
For more information on Graphite One Inc., please visit the Company's website,
www.GraphiteOneInc.com or contact: Anthony Huston, CEO, President & Director, Tel: (604) 889-4251, Email:
[email protected]; Investor Relations Contact, Tel: (604) 684-6730, [email protected]
CO: Graphite One Inc.
CNW 07:00e 25-JUL-24