CHARLOTTE – A lot of future Ford electric vehicles – around 3 million in fact – will be powered by batteries utilizing lithium from Albemarle, the companies announced Monday.
Albemarle landed a five-year supply agreement with Ford. Financial details were not disclosed, but it’s literally a big one.
The industrial conglomerate which operates a growing number of mines around the world said it will provide Ford with “more than 100,000 metric tons of battery-grade lithium” beginning in 2026. Ford has set a production target of some 2 million EVs a year by 2026, aiming to compete more intensely with market leader Tesla.
The Albemarle deal enough for approximately 3 million vehicles. Ford also announced a battery deal with Nemaska Lithium, this one covering 11 years, on Monday.
Albemarle shares rose more than $2, or 1%, to more than $206 a share in pre-market trading.
“We are at a significant moment in Ford’s next industrial revolution for the EV age,” said Lisa Drake, a Ford vice president. “Working with strong global collaborators such as Albemarle, which has well-established operations and a proven track record of scaling facilities, helps us fortify and de-risk our plans for sourcing the key minerals we need to make EVs more accessible for our customers longer-term.”
The lithium hydroxide will be produced either in the U.S. or in a country that has a free trade agreement with the U.S., according to the announcement. “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,” the company added.
“With the growing demand for EVs in the United States, our customers are seeking to regionalize their supply chain for greater security, sustainability and lower costs,” said Eric Norris, president of Albemarle Energy Storage. “This agreement exemplifies the industry collaborations and investments required.”
The companies also will “explore collaborations” into possible lithium-ion battery recycling.
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.
