09:02 AM EDT, 07/25/2024 (MT Newswires) -- Graphite One ( GPHOF ) said Thursday that it signed a non-binding agreement to supply Nasdaq-listed electric vehicle maker Lucid Group with anode active materials (AAM).

Under the terms, Graphite One ( GPHOF ) agreed to supply 5,000 tonnes per annum of material for an initial five-year term once it commences production of synthetic graphite.

The agreement follows Graphite One's ( GPHOF ) selection in March of a site for the company's proposed AAM facility in Ohio.

Graphite One ( GPHOF ) said the site's existing power lines are sufficient for a phase 1 production target of 25,000 tonnes per year (t/y) of battery-ready anode material, and land is available for follow-on phases to ramp to 100,000 t/y of production.

"This is a historic moment for Graphite One ( GPHOF ), Lucid and North America: the first synthetic graphite supply agreement between a US graphite developer and US EV company," said Anthony Huston, Graphite One's ( GPHOF ) president and CEO. "G1 is excited to continue pushing forward developing our 100% US domestic supply chain."

Graphite One's ( GPHOF ) share price rose 1.4% yesterday to $0.71 on the TSXV.