Ford Motor announced several deals to accelerate its shift to electric vehicles, including sourcing battery capacity and raw materials from companies such as Chinese battery maker CATL and Australian mining giant Rio Tinto.
Ford aims to reach its annual EV production rate globally 600,000 vehicles by late 2023 and more than 2 million by the end of 2026.
In March, Ford boosted its planned spending on EVs through 2026 to $50 billion from its prior target of $30 billion.
The Dearborn, Michigan-based company said at the time that its EV business would not be profitable until the next-generation models begin production in 2025.
Ford is adding lithium iron phosphate (LFP) cell chemistry for EV batteries to its portfolio, alongside nickel cobalt manganese (NCM). Ford has secured all of the 60 gigawatt hours (GWh) of cell capacity needed to support the 600,000 run rate.
The U.S. automaker said CATL will provide LFP battery packs for the Mustang Mach-E crossovers for North America starting next year as well as the F-150 Lightning pickups in early 2024.
Ford is also working with LG Energy Solution and its long-time battery partner SK Innovation.
Ford has sourced about 70 percent of the battery cell capacity it needs to achieve its annual production rate of more than 2 million by late 2026.
Ford is direct sourcing battery cell raw materials as well. Ford announced deals to acquire most of the nickel needed through 2026 and beyond through agreements with Vale SA’s units in Canada and Indonesia, China’s Huayou Cobalt and BHP .
Ford has also inked lithium contracts with Rio Tinto, exploring a significant lithium off-take agreement from the mining company’s Rincon project in Argentina.
Ford announced other battery material deals. Ford signed letter of intent with EcoPro BM and SK On to establish a cathode production plant in North America, an offtake agreement for ioneer Ltd to supply lithium carbonate from Nevada beyond 2025, an agreement with Compass Minerals for lithium hydroxide and lithium carbonate from Utah, and an agreement for Syrah Resources and SK On for natural graphite from Louisiana.