Specialty chemicals supplier Albemarle has announced a definitive agreement with Ford to deliver battery-grade lithium hydroxide to support the automaker’s ramp-up of EV production.

Albemarle will supply more than 100,000 metric tons of battery-grade lithium hydroxide for approximately 3 million future Ford EV batteries. The five-year supply agreement starts in 2026 and continues through 2030.

In order to qualify for incentives available under the IRA, Albemarle and Ford aim to deliver lithium hydroxide produced in the United States or a country with a US free trade agreement.

Albemarle and Ford will also explore collaborations to develop a closed-loop solution for lithium-ion battery recycling. The companies will also work together to ensure sustainability, transparency and traceability in their supply chains. Albemarle will supply lithium hydroxide sourced only from mines that have been accredited through an audit based on the Initiative for Responsible Mining Assurance (IRMA).

“With the growing demand for EVs in the United States, our customers are seeking to regionalize their supply chain for greater security, sustainability and lower costs,” said Eric Norris, President, Albemarle Energy Storage. “This agreement exemplifies the industry collaborations and investments required.”

“We are at a significant moment in Ford’s next industrial revolution for the EV age,” said Lisa Drake, Ford’s VP, EV Industrialization, Model e. “Working with strong global collaborators such as Albemarle, which has well-established operations and a proven track record of scaling facilities, helps us fortify and de-risk our plans for sourcing the key minerals we need to make EVs more accessible for our customers.”

Source: Albemarle