Ford continues to invest heavily in electric vehicles and EV batteries and even recently split its business into two distinct entities as it aims to produce two million units annually by 2026. However, ongoing supply chain issues pose a big threat to the automaker’s future plans in that regard, including a recent surge in the price of nickel – a major component in some EV batteries. Lithium is another material that’s vital to EV battery production, which is precisely why Ford has inked a new deal to buy it from a Lake Resources NL facility in Argentina, according to Reuters.
Interestingly, this is the very first time an automaker has publicly announced where it will purchase lithium from, as that material is often sourced in unethical and non-environmentally friendly ways, including the use of child labor. The deal – which is non-binding and still has details that need to be finalized – aims to facilitate the sale of 25,000 tons of lithium annually using a new process dubbed direct lithium extraction (DLE), which requires far less acreage than current methods of extraction. The project is expected to be operational by 2024.
This new deal is just the latest from Ford as it works to source enough materials from around the globe to support its planned EV expansion over the coming years. In China, the automaker will get its batteries from CATL – that country’s largest battery manufacturer – in addition to its existing supplier in that market, BYD. In the U.S. and Europe, Ford is teaming up with battery maker SK Innovation to source batteries and create the new battery production joint venture, BlueOvalSK. Additionally, the automaker has partnered with Redwood Materials on a new battery recycling venture.
Along with Ford, the U.S. government is aiming to source raw EV battery materials from its allies – including Finland, Canada, Australia, and Chile, rather than China, which it’s aiming to reduce its dependency on, while an upstart company is also working to mine lithium in California’s Imperial Valley. All of these efforts are expected to reduce the cost of batteries 40 percent by mid-decade, which will in turn help make EVs more affordable for the masses.
We’ll have more on Ford’s future electrification plans soon, so be sure and subscribe to Ford Authority for non-stop Ford news coverage.
Comments
Lithium? C’mon Ford – get off that old tech. Put your resources towards Solid State Batteries, forget about Lithium ION batteries that catch in fire.
ARE YOU KIDDING ME, ALMOST EVERYONE I TALK TO SAY THEY WOULD NOT BUY AN ELECTRIC CAR. AFTER THE INITIAL SALES SURGE, SALES WILL DROP OFF, MAKING IT A POOR INVESTMENT. GEEZ, WITH ALL THE PROBLEMS KEEPING THE CAR CHARGED. AND REDUCING RANGE IN COLD WEATHER, AND THEY RECOMMEND PARKING IT IN THE SHADE IN HOT WEATHER. A LONG WITH OTHER PROBLEMS, FORD REALLY MADE A BAD DECISION IN GOING WITH ELECTRIC CARS.
WHY ARE YOU SHOUTING?
Had an electric vehicle. Great car. No problems. Not really a smart choice for the environment. But will save the consumer $$$.