Ford Secures Lithium Hydroxide Supplies From Nemaska Lithium For 11 Years

As North America rapidly adopts electric vehicles to combat climate change through sustainability, global auto conglomerate Ford Motor Company has entered into a long-term agreement with Quebec-based Nemaska Lithium for the supply of lithium products, including lithium hydroxide, over an 11-year period.

Ford said that under the terms of the agreement, Nemaska Lithium would deliver up to 13,000 tons of lithium hydroxide per year produced in Bécancour to the automaker. But prior to that, Nemaska Lithium will supply spodumene concentrate from its Whabouchi mine. The integrated project of Nemaska Lithium is planned to be the first one to produce lithium hydroxide in 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,” said Lisa Drake, VP of EV Industrialization, Ford.

The lithium hydroxide that will be produced by the Québec company will meet high standards of quality and sustainability, with one of the lowest carbon footprints in the lithium industry. The lithium hydroxide produced by Nemaska Lithium should help qualify Ford vehicles for consumer tax benefits under the US Inflation Reduction Act.

“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,” said Gervais Jacques, Chairman of Nemaska Lithium. Nemaska Lithium is owned equally by Investissement Québec and Livent.

The USA has limited lithium production at present, which is nearly 1% of the global lithium production. The demand for lithium for electric vehicles is more than double the production rate of lithium, which has shot off the prices of the rare mineral. The USA, as per a recent report, will need about 75,000 tonnes of lithium every year for new EV gigafactories by 2025.