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Factbox-Ford strikes multiple lithium deals to ramp up EV production

Published 05/22/2023, 09:40 AM
Updated 05/22/2023, 09:46 AM
© Reuters. FILE PHOTO: A model of the all-new Ford F-150 Lightning electric pickup is parked in front of the Ford Motor Company World Headquarters in Dearborn, Michigan, U.S., April 26, 2022. REUTERS/Rebecca Cook
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(Reuters) - U.S. automaker Ford Motor (NYSE:F) Co on Monday entered into a series of new deals to source battery-grade lithium, as it plans to scale up electric vehicle production and take advantage of government tax credits.

Robust demand for environment-friendly vehicles has sent North American automakers scrambling for a steady supply of raw materials to boost EV output in a market dominated by Elon Musk's electric-only Tesla (NASDAQ:TSLA) Inc.

Following are the battery material supply deals announced by Ford on Monday:

ALBEMARLE CORP:

Charlotte, North Carolina-based Albemarle (NYSE:ALB) will supply Ford with more than 100,000 metric tons of battery-grade lithium hydroxide, either domestically produced or originating in a country with Free Trade Agreement with the United States.

The quantity will power approximately 3 million future Ford EV batteries. The five-year supply agreement will start in 2026 and continue through 2030.

COMPASS MINERALS:

Ford signed a five-year supply agreement to obtain battery-grade lithium carbonate from Compass' lithium brine development project in Ogden, Utah.

Under the agreement, Compass Minerals will deliver up to 40% of its planned, phase-one battery-grade lithium carbonate to Ford once production begins.

NEMASKA LITHIUM:

Nemaska Lithium, owned by Investissement Québec and Livent (NYSE:LTHM), will supply lithium products, including lithium hydroxide, to Ford over an 11-year period.

The agreement calls for the delivery of up to 13,000 tons of lithium hydroxide per year. Ford will be the company's first customer.

ENERGYSOURCE MINERALS:

EnergySource Minerals will supply lithium hydroxide produced at its Imperial Valley, California site which is expected to be operational in 2025.

© Reuters. FILE PHOTO: A model of the all-new Ford F-150 Lightning electric pickup is parked in front of the Ford Motor Company World Headquarters in Dearborn, Michigan, U.S., April 26, 2022. REUTERS/Rebecca Cook

SOCIEDAD QUIMICA Y MINERA DE CHILE S.A. (SQM):

Chile's SQM and Ford have agreed to a long-term lithium supply agreement, the Chilean lithium miner said in a statement Monday.

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