Ford announces key EV minerals deals ahead of crucial capital markets day

Ford Motor connected Monday announced a bid of caller deals for the proviso of lithium products successful enactment of its ambitious program to dramatically ramp up accumulation of electrical vehicles implicit the adjacent respective years.

The automaker has said it plans to beryllium producing EVs astatine a complaint of 2 cardinal per twelvemonth by 2026.

That projected runrate, arsenic good arsenic an estimated 8% EBIT borderline connected its EV business, has drawn immoderate skepticism from Wall Street. The institution is acceptable to outline its way to some goals during its capital markets time Monday.

Here are the deals Ford announced up of that presentation:

Albemarle said it has entered into a "strategic partnership" with Ford to proviso much than 100,000 metric tons of lithium hydroxide, capable for astir 3 cardinal electrical conveyance batteries, betwixt 2026 and 2030. The companies volition besides "explore collaborations" to make battery-recycling solutions.Compass Minerals International said it has signed a "binding, multiyear" woody nether which it volition proviso Ford with up to 40% of the battery-grade lithium carbonate originating from a caller task successful Ogden, Utah. The institution said antecedently that it expects the task to nutrient astir 35,000 metric tons of lithium carbonate equivalent per twelvemonth erstwhile it's afloat up and running, with capableness of astir 11,000 metric tons per twelvemonth coming online successful 2025.EnergySource Minerals said it has agreed to supply Ford with lithium hydroxide from a caller tract successful Imperial Valley, California, expected to beryllium operational successful 2025. The task is expected to nutrient astir 20,000 metric tons of lithium annually.Canadian miner Nemaska Lithium has agreed to proviso Ford with up to 13,000 tons of lithium hydroxide per twelvemonth implicit 11 years. The lithium volition beryllium sourced from projects successful Nord-du-Québec and Bécancour, some successful the state of Québec.

All of the minerals supplied to Ford nether these deals volition originate successful the United States oregon successful countries with which the U.S. has escaped commercialized agreements, to guarantee that Ford's aboriginal EVs suffice for the new national taxation credits that took effect earlier this year.