Ford inks Argentina lithium supply deal with Lake Resources
Reuters
Published Apr 11, 2022 02:11PM ET
By Ernest Scheyder
(Reuters) - Ford Motor (NYSE:F) Co said on Monday it has signed a preliminary deal to buy lithium from a Lake Resources NL facility in Argentina, marking the first time the automaker has publicly announced where it will procure the electric vehicle battery metal.
The deal is a major bet by Ford on direct lithium extraction (DLE), a relatively new breed of technologies that filter the metal from brines and use far less acreage than open-pit mines and evaporation ponds.
General Motors Co (NYSE:GM), BMW, Stellantis NV and other Ford rivals have inked supply deals of their own with companies planning to use DLE technology.
Ford aims to buy 25,000 tonnes annually of the white metal from Lake's Kachi project in northern Argentina, which is being developed with privately held extraction startup Lilac Solutions Inc.
Lilac's technology, like all DLE technologies, has yet to work commercially, though it has the support of Bill Gates' Breakthrough Energy Ventures and other high-profile investors.
The agreement between Lake and Ford is nonbinding and would need to be finalized to include a specific delivery timetable.
Ford Chief Executive Jim Farley said in February that his company was working on deals to secure supply of key raw materials for batteries such as lithium, nickel, rare earths and copper.
"This is one of several agreements we're exploring to help Ford secure raw materials to support our aggressive EV acceleration plan," said Ford spokesperson Jennifer Flake.
Sydney-based Lake Resources is listed on the Australian Stock Exchange, which requires supply deals to be publicly disclosed.
The Kachi project, in northern Argentina near the Chilean border, is expected to cost about $540 million and open by 2024.
Lilac's technology uses 10 tonnes of water for every tonne of lithium produced. Lilac has said it could use a desalination plant to filter brackish water to avoid using potable water.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.