On Tuesday, Lucid Group and Panasonic Energy Co. confirmed a multi-year agreement that will keep Lucid supplied as the rest of the Lucid Air lineup expands in 2023 and the production of the Gravity SUV begins in 2024.
Panasonic’s supply to Lucid will include lithium-ion cells from a facility in Japan, in addition to the future production from the company’s upcoming plant in De Soto, Kansas, claimed to be the world’s largest battery plant.
Lucid currently uses LG Chem cells in some versions of the Air, including the Grand Touring, while employing Samsung SDI cells in its initial Dream Edition versions of the Air. A press release issued by Panasonic Energy and Lucid states that Panasonic batteries will be supplied for Lucid’s “entire vehicle lineup,” so it’s unclear which versions might retain cells from those existing providers or if they could be channeled towards another project, such as energy storage products.
Having battery cells manufactured in the U.S. in its vehicles can assist Lucid, as it produces more affordable vehicles, in qualifying for the renewed federal EV tax credit, known as the Clean Vehicle Credit, and specifically its new U.S. sourcing requirements. The new credit applies only to cars costing $55,000 or less or SUVs, trucks, or vans costing $80,000 or less.
Nothing has been said about Gravity’s prices yet, but currently, the Air lineup doesn’t come close to that threshold. The base Air Pure costs $88,900 today, including the $1,500 destination fee, and it’s challenging to imagine the Gravity emerging with a lower price. But later in this decade, Lucid intends to bring its efficiency-leading technology to more affordable models.
The Lucid Air, still the longest-range EV on the market, is produced in Casa Grande, Arizona, and the Gravity SUV will be produced there as part of a plant expansion. Panasonic has long been a supplier to Tesla, and reportedly, the Kansas plant will also provide much of its production to Tesla. Canoo is another smaller-scale U.S. EV manufacturer that has confirmed the use of Panasonic cells, likely from the Kansas plant.
A cell switch for Lucid Air production might not be something the buyer notices. As a startup, Lucid’s Atieva group supplied battery packs for Formula E racing and has maintained a deep knowledge base of available cell types, chemistries, and thermal factors.
