Ford F-150 Lightning Platinum electric truck during the 2022 New York International Auto Show, New York.
Michael Nagle |: Bloomberg |: Getty Images:
Ford Motor announced a series of new lithium product supply deals on Monday in support of an ambitious plan to dramatically increase production of electric vehicles over the next few years.
The automaker has said it plans to produce 2 million EVs annually by 2026.
That projected launch rate, along with an 8% EBIT margin on its EV business, has caused some skepticism on Wall Street. The company plans to outline its path toward both goals during its capital markets day on Monday.
Here are the deals that Ford announced ahead of that presentation:
- Albemarle said it has entered into a “strategic partnership” with Ford to supply more than 100,000 tons of lithium hydroxide, enough to power roughly 3 million electric vehicle batteries, between 2026 and 2030. The companies will also “explore partnerships” to develop batteries. processing solutions.
- Compass Minerals International said it has signed a “binding, multi-year” agreement to supply Ford with up to 40% of its lithium carbonate for the battery, originating from a new project in Ogden, Utah. The company previously said it expects the project to produce about 35,000 metric tons of lithium carbonate equivalent per year when fully up and running, and about 11,000 metric tons per year when it comes online in 2025.
- EnergySource Minerals said it has agreed to supply Ford with lithium hydroxide from a new site in California’s Imperial Valley, which is expected to be 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 for 11 years. The lithium will come from the Nord-du-Quebec and Becancour projects, both in the province of Quebec.
All minerals supplied to Ford under these deals will originate in the United States or countries with which the U.S. has free trade agreements to ensure that future Ford EVs qualify for new federal tax credits that take effect entered earlier this year.