Ford Motor Co (NYSE:F) has announced 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. The deals include agreements with Albemarle Corp (NYSE:ALB), Compass Minerals, Nemaska Lithium, EnergySource Minerals and Sociedad Quimica y Minera de Chile S.A. (SQM).
Albemarle will supply Ford with more than 100,000 metric tons of battery-grade lithium hydroxide over a five-year period, while Compass Minerals will deliver up to 40% of its planned, phase-one battery-grade lithium carbonate to Ford once production begins. Nemaska Lithium will supply lithium products, including lithium hydroxide, to Ford over an 11-year period, while EnergySource Minerals will supply lithium hydroxide produced at its Imperial Valley, California site. SQM and Ford have agreed to a long-term lithium supply agreement.
The deals come as 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 (NASDAQ:TSLA) Inc.