Ford Motor Co. (F.N.) announced three lithium product supply partnerships, including lithium hydroxide, on Monday as it ramps electric vehicle (E.V.) manufacturing to 2 million vehicles by 2026.
Before the bell, the company’s shares rose roughly 1% ahead of its “Capital markets” event.
North American automakers are racing to get battery materials to improve E.V. manufacturing and catch up with market leader Tesla Inc (TSLA.O) amid rising demand for environmentally friendly vehicles.
The long-term partnership with Canada’s Nemaska Lithium supplies up to 13,000 tons of lithium hydroxide annually. At the same time, EnergySource Minerals will enable Ford to get lithium hydroxide from the Imperial Valley, California plant, projected to be operational in 2025.
Ford also announced a five-year arrangement with Albemarle Corp (ALB.N) to supply more than 100,000 metric tons of battery-grade lithium hydroxide for 3 million future Ford EV batteries.
The carmaker claimed Nemaska’s lithium hydroxide should help Ford vehicles qualify for consumer tax incentives under the U.S. Inflation Reduction Act.
Livent (LTHM.N) and Investissement Québec, the Quebec government’s economic development agency, hold Nemaska Lithium equally.
Ford became PT Vale Indonesia and Zhejiang Huayou Cobalt’s new partner in a $4.5 billion nickel processing plant in Indonesia earlier this year.
The acquisitions, announced on Monday, will boost “Ford’s sourcing to produce two million E.V.s by the end of 2026 – and beyond,” despite Wall Street’s reservations.
Ford’s full-year guidance of $9 billion to $11 billion in adjusted earnings before interest and taxes and $6 billion in adjusted free cash flow was maintained.
The manufacturer expects its electric vehicle unit to lose $3 billion this year.
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