Time: 2024-08-04
Graphite is a crucial component in the production of lithium - ion batteries , with up to a quarter of the weight in Electric vehicles . China currently dominates the refining of graphite used in batteries , accounting for over 90 % of the global supply . In response to growing restrictions from the US on semiconductor technology access , Beijing added graphite to a list of items requiring an export license in December 2023 . This move led to a surge in graphite prices by more than 150 % as buyers stockpiled the material before the new regulations took effect.
Experts have discussed the implications of the export - license requirement , emphasizing China 's dominance in the battery supply chain , especially in graphite . The importance of ' friendshoring ' was highlighted by experts at the Center for Strategic and International Studies , underlining the need for the US to innovate and reduce reliance on minerals like graphite . Companies like Lyten and Group 14 are working on alternative battery technologies that aim to replace graphite with sulfur cathodes and silicon - carbon composites , respectively.
Lucid Motors , led by CEO Peter Rawlinson , signed a non - binding supply agreement with Graphite One for 5,000 tonnes per annum of synthetic graphite . The deal is set for five years with pricing based on future market trends . This partnership is part of Lucid 's commitment to sustainable vehicles and building a robust domestic supply chain to ensure technology leadership . With the US currently reliant on imports for graphite , Graphite One is developing a US - based supply chain solution using the Graphite Creek deposit.
The agreement marks a historic moment for Graphite One , Lucid , and North America , as it is the first synthetic graphite supply deal between a US graphite developer and an EV company . Graphite One plans to construct an advanced graphite materials and battery anode production facility in Ohio , along with a recycling center for the recovery of battery materials . Their vertically integrated approach aims to produce high - quality anode material for electric vehicle batteries and energy storage systems . The project 's site in Ohio has sufficient infrastructure to support the initial production target of 25,000 tonnes per year , with potential for expansion to 100,000 tonnes annually.
In conclusion , the collaboration between Lucid Motors and Graphite One represents a significant step towards securing a domestic supply of critical raw materials for sustainable transportation . By reducing reliance on foreign sources and promoting innovation in battery technology , the partnership aims to accelerate the transition to electric vehicles and strengthen the US position in the global market.
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