(Reuters) – U.S. automaker Ford Motor 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 Inc.
Following are the battery material supply deals announced by Ford on Monday:
Charlotte, North Carolina-based Albemarle 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.
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, owned by Investissement Québec and Livent, 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 will supply lithium hydroxide produced at its Imperial Valley, California site which is expected to be operational in 2025.
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.
(Reporting by Pratyush Thakur in Bengaluru)