Lucid Motors (NASDAQ:LCID) stock is up more than 7% today after the electric vehicle maker inked a new deal with Graphite One (OTCMKTS: GPHOF) for anode active materials (AAM) used to develop vehicles and enhance its domestic supply chain.
As per the deal, Graphite One will provide 5,000 tonnes per year (tpy) of synthetic graphite, with an initial term of 5 years, though it is subject to early termination.
Back in March, Graphite One selected a site in Ohio for its in-development AAM facility. The location is optimal due to the number of preexisting power lines, necessary for its Phase 1 production of 25,000 tpy of AAM, as well as its availability to ramp up production later to 100,000 tpy.
“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,” said Peter Rawlinson, Chief Executive and Chief Technology Officer at Lucid.
As it stands, the agreement projects Graphite One will begin producing revenue in 2027.
LCID Stock Struggles to Build Momentum as EV Industry Wavers
Despite the promising nature of today’s deal, LCID stock is still well in the red this year. Indeed, LCID is down more than 16% year-to-date, as yet another casualty of this year’s EV winter.
EV makers across the board seem to be down this year as a result of sliding EV demand, elevated interest rates and rising supply costs.
Interestingly, earlier this month, LCID enjoyed a bit of time in the green overall. On July 12, the EV stock climbed to 2% up for the year, riding Tesla’s (NASDAQ:TSLA) coattails after the company reported strong Q2 deliveries numbers the day before. Unfortunately, the momentum was short lived as the stock began sliding back down just the next day.
Investors are currently looking forward to Lucid’s upcoming earnings call, set for August 5.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) and positions in the securities mentioned in this article.
