Ford has signed long-term lithium supply agreements with Albemarle, SQM and Nemaska Lithium.
SQM. The agreement between Ford and SQM will ensure the supply of battery-grade lithium carbonate and lithium hydroxide, essential components to manufacture high-performance electric vehicle batteries. The origin of SQM's lithium should help Ford vehicles to qualify for the Inflation Reduction Act (IRA) consumer tax credit and will help support its plans to produce electric vehicles and expand its presence in the global electric mobility markets.
Neither company provided volumes or timelines.
Albemarle. Albemarle will supply more than 100,000 metric tons of battery-grade lithium hydroxide for approximately 3 million future Ford EV batteries. The five-year supply agreement starts in 2026 and continues through 2030.
In addition to the lithium hydroxide supply, Albemarle and Ford will explore collaborations to develop a closed-loop solution for lithium-ion battery recycling. Furthermore, both companies are deeply committed to responsible sourcing and production and have agreed to work together to ensure sustainability, transparency and traceability in their supply chains. For example, Albemarle will supply lithium hydroxide sourced only from mines that have been accredited through an audit based on the Initiative for Responsible Mining Assurance (IRMA), a comprehensive standard developed by NGOs, affected local communities and workers, among others.
Nemaska. The agreement with Nemaska Lithium is for the supply of lithium products, including lithium hydroxide, over an 11-year period. The agreement calls for the delivery of up to 13,000 tons of lithium hydroxide per year.
The agreement also provides that prior to commencing delivery of lithium hydroxide produced in Bécancour, Nemaska Lithium will supply Ford with spodumene concentrate from its Whabouchi mine. Nemaska Lithium's integrated project is planned to be the first one to produce lithium hydroxide in Québec.