- Ford Motor Co. announces new agreements with leading lithium producers Albemarle Corp. and SQM as part of a plan to ramp up EV production.
- These agreements represent Ford’s proactive approach to overcoming supply chain challenges associated with sourcing critical battery materials.
- Ford’s CEO, Jim Farley, emphasizes the importance of transforming raw materials into processed commodities suitable for manufacturing EV batteries.
In a remarkable testament to its commitment to spearheading the electric vehicle revolution, Ford Motor Co. unveiled a series of sourcing agreements for battery materials, illustrating a robust fortification of its supply chain as it accelerates its electric vehicle production operations.
Leading global lithium producers, Albemarle Corp. based in the U.S. and Chile’s SQM, were amongst the companies that announced new partnerships with Ford. These alliances form part of Ford's strategic roadmap to manufacture 2 million EVs annually by 2026 and sustain growth beyond that timeline.
In the realm of electric vehicle manufacturing, the sourcing and cost of vital battery components such as lithium, nickel, and cobalt have been persistent concerns. The recent uptick in raw material costs, fierce competition for supply contracts, and policy directives from the Biden administration urging companies to decrease dependency on China for essential minerals have exacerbated these anxieties.
In a recent interview, Ford CEO Jim Farley stressed the importance of processing these vital raw materials into a usable form for manufacturing EV batteries. This transformation is not simply about extraction but is central to turning raw materials into processed commodities, especially for lithium and nickel.
The latest agreements also mark Ford’s second set of direct deals with battery metal producers within the year, including commitments from Albemarle, SQM, Canada’s Nemaska Lithium, EnergySource Minerals, and Compass Minerals. These agreements are expected to boost Ford's lithium supply significantly and position it ahead of most auto manufacturers.
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