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Graphite One Announces Non-Binding Lucid Supply Agreement for Anode Materials
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Plain English summary
Graphite One Inc. (TSX‐V: GPH; OTCQX: GPHOF) announced a non-binding Supply Agreement with Lucid Group, Inc. (NASDAQ: LCID) for anode active materials.
- The Supply Agreement provides for 5,000 tpa once Graphite One commences production of synthetic graphite.
- The initial term is 5 years, subject to earlier termination.
- Sales use an agreed price formula linked to future market pricing and base case pricing agreeable to both parties.
- The agreement is subject to project financing required to build the AAM facility and other standard terms, conditions and termination rights.
- Graphite One says there is no certainty it will enter a definitive agreement with Lucid.
Graphite One’s proposed AAM facility is at a brownfield site in Warren, Ohio. The company intends to make a production decision upon completion of a Feasibility Study.
Investor FAQs
On July 25, 2024, Graphite One Inc. (TSX‐V: GPH; OTCQX: GPHOF) announced that it had entered into a non-binding supply agreement with Lucid Group, Inc. (NASDAQ: LCID) for anode active materials. The release states there is no certainty that Graphite One will enter into a definitive agreement with Lucid.
The Supply Agreement is non-binding and provides for 5,000 tpa once Graphite One commences production of synthetic graphite. Its initial term is 5 years, subject to earlier termination. Sales are based on an agreed price formula linked to future market pricing and on satisfying base case pricing agreeable to both parties. The agreement is also subject to other terms, conditions and termination rights standard for an agreement of this nature.
Graphite One is proposing an advanced graphite materials and battery anode materials manufacturing plant at a brownfield site in Warren, Ohio. The site was previously used for storage of National Defense Stockpile critical minerals by the U.S. Government. The release states that existing power lines are sufficient for the Phase 1 production target of 25,000 tonnes per year of battery-ready anode material, with land available for follow-on phases to ramp to 100,000 tpy of production.
Graphite One states that its Supply Agreement with Lucid is subject to project financing required to build the anode active materials facility. The Company intends to make a production decision on the Project upon completion of a Feasibility Study. The release also identifies uncertainties related to obtaining necessary permits, licences and title, delays due to third-party opposition, continued availability of capital and financing, market prices, and general economic, market or business conditions.
Graphite One is developing a proposed U.S.-based supply chain anchored by the Graphite Creek deposit in Alaska. Its plan includes mining and processing graphite into concentrate, manufacturing natural and artificial graphite anode active materials and other value-added graphite products at the proposed facility in northeastern Ohio, and establishing a recycling facility at the Ohio site to reclaim graphite and other battery materials. These activities remain part of the Company’s proposed Project and forward-looking statements.
Graphite One’s President and CEO said that, subject to project financing required to build the anode active materials facility, the Supply Agreement puts the Company on the path to produce revenue in 2027. The release identifies future production, completion of project financing, the proposed facilities and the timing and completion of the Feasibility Study as forward-looking matters. It states that such statements are not guarantees of future performance and that actual results or developments may differ materially.
The release cautions that there is no certainty that Graphite One will enter into a definitive agreement with Lucid. It also identifies risks including market prices, exploitation and exploration successes, continuity of mineralisation, necessary permits, licences and title, delays due to third-party opposition, changes in government policies regarding mining and natural resource exploration and exploitation, continued availability of capital and financing, and general economic, market or business conditions. The release says readers should not place undue reliance on the forward-looking information.
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