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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SOURCE Graphite One Inc.