A Ford F-150 Lightning Platinum electric truck is seen during the 2022 New York International Auto Show (NYIAS) in New York, U.S., on Thursday, April 14, 2022. NYIAS returns after two years of being canceled due to the Covid-19 pandemic.
Michael Nagel | Bloomberg | Getty Images
Ford A slew of new lithium product supply deals was announced on Monday to support its ambitious plans to dramatically ramp up electric vehicle production in the coming years.
The automaker said it plans to produce 2 million electric vehicles a year by 2026.
That projected run rate, along with an estimated 8% EBIT margin for its EV business, has raised some skepticism on Wall Street. The company will outline its path to both goals at its capital markets day on Monday.
Here are the deals Ford announced ahead of the presentation:
- Albemarle said it has entered into a “strategic partnership” with Ford to supply more than 100,000 metric tons of lithium hydroxide between 2026 and 2030, enough to make about 3 million electric vehicle batteries. The two companies will also “explore collaboration” to develop battery-recycling solutions.
- Compass Minerals International said it has signed a “binding multi-year” agreement under which it will supply Ford with up to 40% of its battery-grade lithium carbonate from a plant in Ogden, Utah. new project. The company previously stated that it is expected that the project will be able to produce about 35,000 tons of lithium carbonate equivalent per year after it is fully put into operation, and the production capacity will be about 11,000 tons per year in 2025.
- EnergySource Minerals said it has agreed to supply lithium hydroxide to Ford from a new plant in Imperial Valley, California, which is expected to be operational by 2025. The project is expected to produce approximately 20,000 metric tons of lithium per year.
- Canadian miner Nemaska Lithium has agreed to supply Ford with as much as 13,000 tonnes of lithium hydroxide per year for 11 years. Lithium will be sourced from the Nord-du-Québec and Bécancour projects in Quebec.
All minerals supplied to Ford under the deals will come from the U.S. or countries with which the U.S. has a free trade agreement, ensuring that Ford’s future electric vehicles will qualify for new federal tax credits that went into effect earlier this year.
