Legacy automaker Ford detailed on Monday’s Capital Market Days its plans to profitably produce millions of electric vehicles while expanding its traditional operations. As part of the strategy, Ford announced a new partnership with a Quebec-based lithium company.
“We are proud to work with Nemaska Lithium and its partners, Livent and Investissement Québec. The Nemaska Lithium project will be a sustainable source of lithium, supporting Ford’s ability to scale and helping us make EVs more accessible and affordable over time to millions of customers.”
Lisa Drake, Ford’s VP of EV Industrialization, Model e
Supply agreement
Ford and Nemaska Lithium had formed a long-term lithium hydroxide supply agreement for an 11-year period, per the press release.
It commits Nemaska Lithium to supply Ford with up to 3,000 tons of lithium hydroxide annually. In addition, it will also apparently supply the second-largest American automaker with its Whabouchi mine-produced spodumene concentrate before the delivery of its Bécancour mine-produced lithium hydroxide.
Remarkably, Nemaska’s consolidated project is expected to be the first to make lithium hydroxide in Québec.
Benefits
For those unaware, Nemaska Lithium produces and sells high-quality battery-grade lithium hydroxide. That considered, the partnership will aid both parties in their common goals to develop sustainable and efficient practices in their overall operations.
Nemaska’s lithium hydroxide is expected to be of high-quality standard and sustainable. It is also said to be among the lowest carbon footprints in the lithium market.
“One of the strong advantages that our product will have is that we have access to hydroelectricity,” he said. “On top of that, we use up to 12 times less water than certain processes and (emit) more than 70 per cent less greenhouse gas emissions than other similar processes around the world.”
Steve Gartner, Nemaska Lithium
CFO said in an interview Monday (via CTV News Montreal)
Most especially, it will enable Ford EVs to qualify for federal tax credits of up to $7,500 under the Inflation Reduction Act.
“We are honored to have Ford as a major customer of Nemaska Lithium. This long-term agreement with a global leader in the automotive industry and in the development of electric vehicles is a tribute to the strength of Nemaska Lithium’s project and the quality of the product we will supply. It also strengthens our position as a major player in the development of the battery industry in Québec and Canada.”
Gervais Jacques, Nemaska Lithium’s Chairman of the Board of Directors
About Nemaska Lithium
Nemaska Lithium is equally owned by the Québec government’s economic development agency Investissement Québec and global lithium tech leader Livent.
Nemaska Lithium’s Board of Directors appointed Livent to supervise the sales and marketing efforts of the company on an “exclusive basis,” the press release noted. Given its 80-year expertise in lithium chemicals, it also backs Nemaska in the planning and development management of both the Bécancour and Whabouchi sites.
“We are excited to support Québec in its development of a domestic battery supply chain, and to develop a relationship with Ford as it focuses on developing electric vehicles built on a strong, North American supply chain.
Paul Graves, Livent’s President and CEO & Nemaska Lithium’s Board Member
See Also:
- Ford forecasts a multi-billion dollar loss on its EV business in 2023
- Ford teases the impending launch of a new electric vehicle in Europe
- Ford E-Transit year one: 745,000 gallons of gas saved/12M miles, 57% CO2 reduction
- Despite fewer EV sales during February, Ford stock rose in 2023
- Ford to unveil its new EV model that will use a VW-developed platform on March 21
Indeed, this new partnership will aid Ford in achieving its 2026 target of producing 2 million EVs per year. Considering that enormous target figure, it would really be crucial for the automaker to secure enough supply of minerals necessary for the EV batteries.
