Clean Technology Canada

Ford and Nemaska Lithium enter long-term lithium hydroxide supply agreement

May 23, 2023
By Canadian Manufacturing

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MONTRÉAL — Ford Motor Company has entered into a long-term agreement with Nemaska Lithium for the supply of lithium products, including lithium hydroxide, over an 11-year period.

The agreement calls for the delivery of up to 13,000 tons of lithium hydroxide per year. The agreement also provides that prior to commencing delivery of lithium hydroxide produced in Bécancour, Nemaska Lithium will supply Ford with spodumene concentrate from its Whabouchi mine. Nemaska Lithium’s integrated project is planned to be the first one to produce lithium hydroxide in Québec.

“We are proud to work with Nemaska Lithium and its partners, Livent and Investissement Québec. The Nemaska Lithium project will be a sustainable source of lithium, supporting Ford’s ability to scale and helping us make EVs more accessible and affordable over time to millions of customers,” said Lisa Drake, Ford’s VP of EV Industrialization, Model e.

Nemaska Lithium shared it is committed to the manufacturing and sale of high-quality battery-qualified lithium hydroxide and, like Ford, is committed to establishing sustainable and responsible practices in all its operations. The lithium hydroxide that will be produced by the Québec company will meet standards of quality and sustainability, with one of the lowest carbon footprints in the lithium industry. The lithium hydroxide produced by Nemaska Lithium should help qualify Ford vehicles for consumer tax benefits under the U.S. Inflation Reduction Act.

“We are honored to have Ford as a major customer of Nemaska Lithium. This long-term agreement with a global leader in the automotive industry and in the development of electric vehicles is a tribute to the strength of Nemaska Lithium’s project and the quality of the product we will supply. It also strengthens our position as a major player in the development of the battery industry in Québec and Canada,” said Gervais Jacques, Chairman of the Board of Directors of Nemaska Lithium.

Nemaska Lithium is owned in equal parts by Investissement Québec, the economic development agency of the Québec government, and Livent.

“We are excited to support Québec in its development of a domestic battery supply chain, and to develop a relationship with Ford as it focuses on developing electric vehicles built on a strong, North American supply chain,” added Paul Graves, President and CEO of Livent and Board Member of Nemaska Lithium.

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