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

Compass Minerals International

22/05/2023 14:38

May 22 (Reuters) - U.S. automaker Ford Motor Co  F.N  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  TSLA.O .
    Following are the battery material supply deals announced by
Ford on Monday:
    
    ALBEMARLE CORP  ALB.N :
    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.
    
    COMPASS MINERALS  CMP.N :
    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
 LTHM.N , 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.
    
    SOCIEDAD QUIMICA Y MINERA DE CHILE S.A. (SQM):
    Chile's SQM  SQMA.SN  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)
 ((pratyush.thakur@thomsonreuters.com))