- Ford Motor Company on Monday announced a series of new deals to supply lithium products to support its plan to dramatically increase production of electric vehicles.
- The automaker said it plans to produce 2 million electric cars annually by 2026.
- The company is set to outline its path to that goal during Monday’s Capital Markets Day.
Ford F-150 Lightning Platinum electric truck during the 2022 New York International Auto Show (NYIAS) in New York, US, on Thursday, April 14, 2022. The NYIAS is returning after being canceled for two years due to the Covid-19 pandemic.
Michael Nagel | bloomberg | Getty Images
Ford Motor Company on Monday announced a series of new deals to supply lithium products to support its ambitious plan to dramatically increase production of electric vehicles over the next several years.
The automaker said it plans to produce 2 million electric cars annually by 2026.
That projected rate, plus an 8% EBIT margin on the electric vehicle business, has sparked some skepticism from Wall Street. The company is set to set its course for both targets during its Capital Markets Day on Monday.
Here are the deals Ford announced ahead of this 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 about 3 million electric vehicle batteries, between 2026 and 2030. The companies will also “explore avenues of collaboration” to develop battery-powered recycling solutions.
- Compass Minerals International said it has signed a “binding, multi-year” deal under which it will supply Ford with up to 40% of the battery-grade lithium carbonate arising from a new project in Ogden, Utah. The company has previously said that it expects the project to produce around 35,000 metric tons of lithium carbonate equivalent per year once it is fully operational and operational, with a capacity of about 11,000 metric tons per year in 2025.
- EnergySource Minerals said it has agreed to supply lithium hydroxide to Ford from a new site in Imperial Valley, California, that is expected to become 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 Quebec.
All metals supplied to Ford under these deals will originate in the United States or in countries with which the United States has free trade agreements, to ensure that Ford’s future electric vehicles are eligible for new federal tax credits that took effect earlier this year.
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