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):
