A Ford F-150 Lightning Platinum electric truck during the 2022 New York International Auto Show (NYIAS) in New York, U.S., on Thursday, April 14, 2022. The NYIAS returns after being cancelled for two years due to the Covid-19 pandemic.
Michael Nagle | Bloomberg | Getty Images
Ford Motor on Monday announced a series of new deals for the supply of lithium products in support of its ambitious plan to dramatically ramp up production of electric vehicles over the next several years.
The automaker has said it plans to be producing EVs at a rate of 2 million per year by 2026.
That projected runrate, as well as an estimated 8% EBIT margin on its EV business, has drawn some skepticism from Wall Street. The company is set to outline its path to both goals during its capital markets day Monday.
Here are the deals Ford announced ahead of that presentation:
- Albemarle said it has entered into a “strategic partnership” with Ford to supply more than 100,000 metric tons of lithium hydroxide, enough for roughly 3 million electric vehicle batteries, between 2026 and 2030. The companies will also “explore collaborations” to develop battery-recycling solutions.
- Compass Minerals International said it has signed a “binding, multiyear” deal under which it will supply Ford with up to 40% of the battery-grade lithium carbonate originating from a new project in Ogden, Utah. The company said previously that it expects the project to produce about 35,000 metric tons of lithium carbonate equivalent per year once it’s fully up and running, with capacity of about 11,000 metric tons per year coming online in 2025.
- EnergySource Minerals said it has agreed to provide Ford with lithium hydroxide from a new site in Imperial Valley, California, expected to be operational in 2025. The project is expected to produce about 20,000 metric tons of lithium annually.
- Canadian miner Nemaska Lithium has agreed to supply Ford with up to 13,000 tons of lithium hydroxide per year over 11 years. The lithium will be sourced from projects in Nord-du-Québec and Bécancour, both in the province of Québec.
All of the minerals supplied to Ford under these deals will originate in the United States or in countries with which the U.S. has free trade agreements, to ensure that Ford’s future EVs qualify for the new federal tax credits that took effect earlier this year.
Source: https://www.cnbc.com/2023/05/22/ford-ev-minerals-deals-capital-markets-day.html