Lucid Group Inc. LCID has signed a multi-year settlement with Graphite One as ongoing restrictions on exports of vital supplies by the Chinese language authorities pose provide chain disruptions.
What Occurred: “A provide chain of vital supplies inside the US drives our nation’s financial system,” Lucid’s Interim CEO Marc Winterhoff stated in a press release launched by the automaker on Wednesday.
The settlement stipulates Graphite One will provide Lucid and the EV maker’s battery suppliers with pure graphite, “which can start manufacturing in 2028,” the assertion notes.
Lucid has additionally reached an settlement with Syrah Assets to provide artificial graphite to the automaker in 2026. These agreements “proceed Lucid’s concentrate on strengthening its US-based provide chain and establishing native provide for vital minerals.” the assertion stated.
Why It Issues: The continued commerce tensions between Washington and Beijing have hit the worldwide automotive business laborious, with a number of automakers warning that China’s restrictions on vital minerals and uncommon earth steel exports may considerably affect manufacturing.
Tesla Inc. TSLA CEO Elon Musk additionally lately highlighted the significance of a home provide chain, which the billionaire stated may assist mitigate geopolitical dangers.
Amid the backwards and forwards between the 2 superpowers, the Trump administration has accused Beijing of violating the Geneva Commerce Settlement, which China firmly denies and has vowed retaliation.
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