Ford Announces Mining MOUs to Support EV Batteries

Researched by Industrial Info Resources (Sugar Land, Texas)--Ford Motor Company (NYSE:F) (Dearborn, Michigan) has signed non-binding memorandums of understanding (MOUs) with mining companies to directly source battery cell raw materials, in order to support its electric vehicle (EV) battery production, the automaker announced last week.

"We will move fast in the key markets and regions where critical supplies are available, meeting with government officials, mining companies and processors and signing MOUs and agreements that reflect Ford's ESG expectations and underpin Ford's plan to bring EVs to millions," said Lisa Drake, vice president, EV Industrialization for Ford Model e. Ford Model e is the company's new EV division, which was spun off from the internal combustion engine business.

Ford said Thursday it had added the battery supplies and contracts it needs to deliver 600,000 EVs across the globe by late 2023, and has sourced about 70% of battery cell capacity for 2 million EVs by late 2026.

The non-binding MOUs with mining companies to source minerals, particularly nickel and lithium, will support the automaker's battery capacity goals. Some of those companies include:

• Vale Canada Limited (Toronto), a wholly owned subsidiary of Brazilian miner Vale (NYSE:VALE) (Rio de Janeiro), to "explore potential opportunities across the EV value chain";
• Vale subsidiary PT Vale Indonesia and China-based Huayou Cobalt Company, to evaluate a three-way nickel processing project, and a separate off-take agreement with Huayou
• BHP Group Limited (NYSE:BHP) (Melbourne, Australia), for nickel from its Nickel West operations in Australia. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can click here for a related project report.

Ford already utilizes nickel cobalt manganese (NCM) battery cell chemistry, and plans to add lithium iron phosphate (LFP) chemistry.

Ford has signed a non-binding MOU with Rio Tinto plc (NYSE:RIO) (London, England), in order to explore a lithium off-take agreement from its Rincon project in Argentina. In March, Rio Tinto finalized its US$825 million acquisition of the Rincon project. This is part of a multi-metal MOU between Ford and Rio Tinto that also involves sourcing low-carbon aluminum and copper. Click here for related Rincon project reports.

For more information on global lithium assets being snatched up, see December 27, 2021, article - Miners Grab Up Lithium Assets as Demand for Lithium-Ion Batteries Skyrockets.

Meanwhile, Compass Minerals (Ogden, Utah) would offer up lithium hydroxide and lithium carbonate from its Great Salt Lake operations. Industrial Info is tracking the company's lithium extraction circuit addition to produce 25,000 tons per year of lithium carbonate equivalent. Click here for the project report.

Ford already has signed a binding off-take agreement with ioneer Limited (Sydney, New South Wales) for lithium carbonate from ioneer's Rhyolite Ridge project in Nevada, which includes a $640 million grassroot aboveground lithium-boron mine and mill and a $74 million lithium hydroxide circuit addition. Click here for related project reports.

Click here for a list of detailed project reports mentioned in this article, and click here for a list of related plant profiles.

Earlier this week, Ford announced it finalized its 50:50 joint venture with SK Innovation Company Limited (Seoul, South Korea) that will build and operate an EV battery manufacturing plant in Tennessee and two more in Kentucky. Ford will contribute up to $6.6 billion in capital spending to the joint venture over five years, ending in 2026--subject to any agreed-upon adjustments. For more information, see July 18, 2022, article - Ford Finalizes U.S. EV Battery Joint Venture.

Ford has also announced a non-binding MOU with Contemporary Amperex Technology Company Limited (CATL) (Ningde, China), the world's largest battery producer, to further support EV battery production and supply Ford's markets in China, Europe and North America.

Industrial Info is tracking 34 active Ford projects, worth more than $16 billion, in North America. Subscribers to the GMI Industrial Manufacturing Project Database can click here for the project reports.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).