Sunday, December 22, 2024

SQM Announces Long-Term Lithium Supply Agreement with Ford Motor Company

Sociedad Química y Minera de Chile S.A. and Ford Motor Company have announced a long-term strategic agreement to secure the supply of high-quality lithium products for production of electric vehicles.

The agreement between Ford and SQM will ensure the supply of battery-grade lithium carbonate and lithium hydroxide, essential components to manufacture high-performance electric vehicle batteries. The origin of SQM’s lithium should help Ford vehicles to qualify for the Inflation Reduction Act (IRA) consumer tax credit and will help support its plans to produce electric vehicles and expand its presence in the global electric mobility markets.

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Carlos Díaz, Executive Vice President Lithium of SQM, said: “We are pleased to announce this strategic agreement and value Ford’s trust in SQM’s ability to deliver battery-grade lithium products sustainably produced in Chile. As one of the largest lithium producers in the world, for over 25 years, SQM has been investing in the technology and development of its own processes to produce high value-added lithium products with one of the lowest environmental footprints in the industry. This alliance will allow both companies to contribute further to the decarbonization of the planet on a global scale.”

Added Lisa Drake, Ford‘s vice president, EV Industrialization, Model e: “Working with strong global collaborators such as SQM will help us make real progress on making EVs more accessible for our customers down the road. SQM has established well-run operations, a commitment to sustainability, and a proven track record for scaling capacity. Working together helps Ford strengthen our plans to help secure the lithium we need and to de-risk our production plans for millions of EVs over time.”

SOURCE: PR Newswire

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