A Canadian public company is getting ready to supply synthetic graphite to one of the fastest growing electric vehicle companies in the world.
What’s happening:
- Graphite One (TSXV: GPH) has entered into a new supply deal with electric vehicle manufacturer Lucid Group (NASDAQ: LCID) for anode active materials that are used in new battery production
Why it matters:
- This is the first ever commercial deal to happen for synthetic graphite between a United States based graphene producer and a electric vehicle company
By the numbers:
- Graphite One will provide Lucid with 5,000 tonnes of battery grade anode material each year
- The initial supply deal between Graphite One and Lucid Group is set to last for 5 years
Going deeper:
- Electric vehicle companies have been racing to secure domestically sourced metals for battery production, with Tesla (NASDAQ: TSLA) notably having an offtake deal with Talon Metals (TSX: TLO) for nickel supply
The intrigue:
- The United States Department of Defense has been providing significant funding for North American based graphite companies recently and also previously entered into a contract with Graphite One to develop a graphite based foam fire suppressant
