CHARLOTTE, 23 May 2023: Albemarle Corporation and Ford Motor Company have entered into a definitive agreement for the supply of battery-grade lithium hydroxide, which will support latter’s electric vehicle (EV) production.
Battery-grade lithium hydroxide
Albemarle, a global leader in providing essential elements for various industries, will supply over 100,000 metric tons of battery-grade lithium hydroxide, which is expected to be used in approximately 3 million future Ford EV batteries. The supply agreement is set to begin in 2026 and continue through 2030, spanning five years.
Both Albemarle and Ford share a commitment to supporting the U.S. EV supply chain by utilizing lithium hydroxide that is domestically produced in the United States or sourced from countries with U.S. Free Trade Agreements.
“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. This agreement exemplifies the industry collaborations and investments required. We’re honored to be entering into this strategic partnership with a legendary automotive manufacturer such as Ford,” said Eric Norris, President, Albemarle Energy Storage.
Lithium-ion battery recycling
In addition to the supply agreement, Albemarle and Ford plan to collaborate on the development of a closed-loop solution for lithium-ion battery recycling. This indicates their shared interest in finding sustainable and environmentally friendly ways to manage end-of-life batteries. Both companies are also dedicated to responsible sourcing and production, emphasizing sustainability, transparency, and traceability in their respective supply chains.
Albemarle commits to supplying lithium hydroxide exclusively from mines that have received accreditation through an audit based on the Initiative for Responsible Mining Assurance (IRMA), a comprehensive standard developed in collaboration with NGOs, local communities, and workers.
Lisa Drake, Ford’s vice president of EV Industrialization, Model e, expressed the significance of this collaboration in Ford’s transition to the EV age. Working with established global partners like Albemarle, which possesses expertise in scaling facilities, helps Ford strengthen its plans and reduce risk in sourcing the essential minerals required to make EVs more accessible to customers in the long term.