Ford Motor Company announced long-term contracts with multiple lithium suppliers last week as the automaker moves to secure the raw materials needed to scale its electric vehicle production.
As Ford aims to produce 600,000 EVs this year and more than 2 million units by 2026, the automaker has spent the last year securing ongoing access to the critical minerals needed for its EV vehicles and batteries.
The company is working to develop a more sustainable North American battery supply chain, which will help “fortify and de-risk our plans for sourcing the key minerals we need to make EVs more accessible for our customers longer-term,” Lisa Drake, Ford’s vice president of EV Industrialization, Model e, said in an Albemarle release.
Ford's recent lithium supplier agreements
In addition to the supplier partnership between Albemarle and Ford, the two companies will also explore options to develop a closed-loop solution for lithium-ion battery recycling.
The automaker has been working to broaden its supplier pool amid worries of limited raw material supply, securing mineral agreements in Asia, South America and North America. In April, Ford added to its trove of suppliers by investing in an Indonesia-based nickel facility. The site is set to open in 2026.
Ford’s growing list of suppliers will help the automaker fulfill its planned capacity additions, especially as the company expands its EV production sites across the U.S. In February, Ford announced a $3.5 billion investment for its first lithium iron phosphate EV battery plant in Michigan.