the oregon group logo

Investment Insights. Stay Ahead.

Ford strikes series of North-America-based new deals to secure EV critical minerals, fueled by Inflation Reduction Act

Automaker Ford is gearing up to boost its electric vehicle production to 2 million cars over the next two and half years. And this will need a secure supply of critical minerals.

Ford has announced four new new deals across the US and Canada:

  • Albemarle Corp will supply Ford with more than 100,000 metric tons of battery-grade lithium hydroxide, to power 3 million EV batteries. Starting in 2026, the five year supply agreement will be from either domestically produced or originating in a country with Free Trade Agreement with the US
  • Compass Minerals will supply up to 40% of it’s battery-grade lithium carbonate to Ford for 5 years, from it’s lithium brine development in Utah
  • Nemaska Lithium, based in Québec and Livent, will supply up to 13,000 tons of lithium hydroxide per year for 11 years to Ford
  • EnergySource Minerals will supply lithium hydroxide produced at its Imperial Valley, California site which is expected to be operational in 2025
  • Ford also announced a new long-term lithium supply deal with Chile’s SQM

The agreements come as the auto giant plans to produce 600,000 EVs by the end of 2023 and take advantage of US government tax credits, fueled by the Inflation Reduction Act.

“Onshoring the processing is going to be the most important controller of cost and also politics. Eighty percent of the processing for nickel and lithium are being done in China and we need to localize that.”

—   Jim Farley, Ford chief executive officer, told Bloomberg

By 2030, Ford expects annual energy demand for its vehicles will be up to 140 GWh annually in North America and up to 240 GWh globally. They are working to build out 240GWh of new battery cell capacity is underway from 5 gigafactories across the USA.

“This is a big moment for Ford. Deals with developers are important, but ones active producers are irreplaceable. This isn’t a flash in the pan. This is the bedrock for an entire new lithium ion economy in the USA. The Inflation Reduction Act has been an incredible force for our industry. It has completely shifted the economics of the game and has resulted in industry collaborating to build an entire industry from scratch in North America.”

— Simon Moores, founder and CEO of the UK mining data firm Benchmark Mineral Intelligence, wrote on the deals

We have three recommended analyses for investors:


The Oregon Group has full editorial control over all content published on this website and the author has not been compensated or remunerated by any person to provide content for The Oregon Group, and all statements and expressions herein are the sole opinion of The Oregon Group. However, from time to time, The Oregon Group and its directors, officers, partners, employees, authors, or members of their families, as well as persons who are interviewed for articles on this website, may have a long or short position in securities or commodities mentioned and may make purchases and/or sales of those securities or commodities in the open market or otherwise. By accessing and using this website, readers are cautioned to assume that each of the foregoing persons may have a financial interest in all companies and sectors mentioned on this website. Any projections, market outlooks or estimates herein are forward looking statements and are inherently unreliable., and any such statements are based upon certain assumptions and should not be construed to be indicative of the actual events that will occur.  Other events that were not taken into account may occur and may significantly affect the returns or performance of the securities or commodities discussed herein. The information provided herein is based on matters as they exist as of the date of preparation and not as of any future date, and The Oregon Group undertakes no obligation to correct, update or revise the information in this document or to otherwise provide any additional material. The information provided on this website is for informational purposes only and is not, directly or indirectly, an offer, solicitation of an offer and/or a recommendation to buy or sell any security or commodity, and the information provided on this website should not be construed as any advice or an opinion as to the price at which the securities of any company or commodity may trade at any time. The Oregon Group is a publisher of financial information, not an investment advisor.  We do not provide personalized or individualized investment advice or information that is tailored to the needs of any particular recipient, and the information provided on this website is not and should not be construed as personal, financial, investment or professional advice. Readers are cautioned to always do their own research and review of publicly available information and to consult their professional and registered advisors before purchasing or selling any securities or commodities and should not rely on the information contained herein. Neither The Oregon Group nor any of its affiliates accepts any liability whatsoever for any direct or consequential loss howsoever arising, directly or indirectly, from any use of the information contained herein. By using the Site or any affiliated social media account, you are indicating your consent and agreement to this disclaimer and our terms of use. Unauthorized reproduction of this newsletter or its contents by photocopy, facsimile or any other means is illegal and punishable by law.

Share this article

about the author

Picture of The Oregon Group

The Oregon Group

The Oregon Group is an investment research team focused on critical minerals, mining, energy and geopolitics.


Subscribe for Investment Insights. Stay Ahead.

Subscribe and get today’s market and industry trends delivered to you in real-time.

[mepr-membership-registration-form id="4595"]


Welcome to The Oregon Group, an investment research team focused on critical minerals, mining, energy and geopolitics.

Our independent capital markets experts are sharing their boardroom expertise and institutional experience to help you profit and hedge your investment exposure during this time of unmissable opportunity.

Subscribe and get today’s market and industry trends delivered to you in real-time.

[mepr-membership-registration-form id="4595"]