Lucid Group (LCID, Financial) just signed its third major graphite supply agreement—and it's not just about batteries. It's a calculated move to shield its EV business from rising geopolitical volatility and supply chain fragility. The deal is with Graphite One, a Vancouver-based firm aiming to mine in Alaska and process in Ohio. It builds on Lucid's earlier agreements for synthetic graphite and foreign-sourced material refined in Louisiana. Taken together, these deals could help Lucid tighten its grip on a U.S.-centric battery supply chain, one that's increasingly becoming a strategic moat.
“We need so much of it,” interim CEO Marc Winterhoff told Bloomberg, referring to graphite's critical role in EV batteries. According to Winterhoff, demand certainty is key to making U.S. graphite mines viable—and the auto industry might be the one with enough scale to unlock that equation. The company's supply chain realignment began before any new tariff push by Donald Trump, but it now looks especially well-timed. Lucid is expected to showcase the partnership this week at the Alaska Governor's Energy Summit, as battery minerals take center stage in both industrial and policy conversations.
Graphite One's CEO Anthony Huston called the agreement a step toward “strengthening U.S. industry and national defense,” and the market narrative may soon reflect that. As tariffs re-enter the political spotlight and foreign sourcing gets more complex, Lucid's vertical integration strategy could resonate with investors looking for long-term resilience in the EV space. With all eyes on battery input costs and energy security, this isn't just a procurement update—it's a potential signal of where the next competitive advantage in electric vehicles might be built.
