US auto manufacturer Ford Motor Co. announced on Monday several new deals to source battery-grade lithium in order to increase its EV production. The companies involved are Albemarle Corp, Compass Minerals, Nemanska Lithium, Energysource Minerals, Sociedad Quimica Y Minera de Chile S.A.
- Albemarle has a five-year agreement to supply 100,000 metric tons of battery-grade lithium hydroxide from either the US or a country that has a free-trade agreement with the US. This amount should be sufficient for around 3 million EV batteries.
- Compass signed a five-year agreement to supply lithium-carbonate from their Ogden, Utah lithium brine development project.
- Nemanska agreed to an 11-year supply deal for lithium products, including up to 13,000 tons of lithium hydroxide per year.
- Energysource will supply lithium hydroxide from its Imperial Valley, California site, due to be operational in 2025.
- Sociedad has agreed a long-term lithium supply.
The multiple deals will also enable Ford to take advantage of government tax credits.
Ford is investing $22 billion in electrification through 2025 as part of its plan to lead electrification in areas of strength. The company is electrifying its most iconic products – the Mustang, F-150 and Transit – with many more to come in the years ahead.
A key part of Ford’s goal to drive the adoption of electric vehicles is to target the large market for fully electric commercial vans and pickups. Ford is planning to bring the benefits of electric vehicles to these customers with an accessible price point, improved productivity, and lower cost of ownership.
Ford also recently increased its investment in Solid Power, an industry-leading producer of all-solid-state batteries for electric vehicles.