Ford Signs New EV Raw Material Deal For Nickel In Indonesia

March 30, 2023 10:13 am

As it aims to significantly ramp up EV production over the next few years, Ford has signed a number of deals with a wide array of suppliers across the globe, looking to secure the EV raw material mix it needs to build enough batteries to meet those goals. Most recently, that includes deals with companies like Liontown Resources, while its joint venture partner – SK On – continues to expand its own network of EV raw material suppliers. FoMoCo is working to shift its sourcing of these materials to the U.S., but in the meantime, has already secured all of the nickel it needs to meet its production goals through 2026. Now, Ford continues to stockpile its raw materials supply following a new deal with PT Vale Indonesia Tbk and Zhejiang Huayou Cobalt Co.

This deal between the three companies aims to increase nickel production in Indonesia – driving down the cost of EVs in the process – and involves each investing in the Pomalaa Block High-Pressure Acid Leaching (HPAL) Project, which will process ore provided by PT Vale Indonesia from its Pomalaa Block mine to produce mixed hydroxide precipitate (MHP) in Kolaka, Southwest Sulawesi, Indonesia. MHP is a lower-cost nickel product used in EV batteries with nickel-rich cathodes.

When fully operational, the plant is expected to be able to produce up to 120 kilotons of contained nickel per year in the form of MHP. Though the deal is still pending regulatory approval, early site preparations are already underway, with full construction expected to begin this year ahead of a projected opening date of 2026.

“This framework gives Ford direct control to source the nickel we need – in one of the industry’s lowest-cost ways – and allows us to ensure the nickel is mined in line with our company’s sustainability targets, setting the right ESG standards as we scale,” said Lisa Drake, vice president for Ford Model e EV industrialization. “Working this way puts Ford in a position to help make EVs more accessible for millions and to do it in a way that helps better protect people and the planet.”

We’ll have more on Ford’s EV raw material deals soon, so be sure and subscribe to Ford Authority for ongoing Ford news coverage.

By Brett Foote

Brett's lost track of all the Fords he's owned over the years and how much he's spent modifying them, but his current money pits include an S550 Mustang and 13th gen F-150.