Ford inks Argentina lithium supply deal with Lake Resources

By Ernest Scheyder

– Ford Motor Co mentioned on Monday it has signed a preliminary deal to purchase lithium from a Lake Assets NL facility in Argentina, marking the primary time the automaker has publicly introduced the place it would procure the electrical car battery metallic.

The deal is a serious guess by Ford on direct lithium extraction (DLE), a comparatively new breed of applied sciences that filter the metallic from brines and use far much less acreage than open-pit mines and evaporation ponds.

Normal Motors Co, BMW, Stellantis NV and different Ford rivals have inked provide offers of their very own with corporations planning to make use of DLE expertise.

Ford goals to purchase 25,000 tonnes yearly of the white metallic from Lake’s Kachi challenge in northern Argentina, which is being developed with privately held extraction startup Lilac Options Inc.

Lilac’s expertise, like all DLE applied sciences, has but to work commercially, although it has the help of Invoice Gates’ Breakthrough Vitality Ventures and different high-profile traders.

The settlement between Lake and Ford is nonbinding and would should be finalized to incorporate a selected supply timetable.

Ford Chief Govt Jim Farley mentioned in February that his firm was engaged on offers to safe provide of key uncooked supplies for batteries equivalent to lithium, nickel, uncommon earths and copper.

“That is one in every of a number of agreements we’re exploring to assist Ford safe uncooked supplies to help our aggressive EV acceleration plan,” mentioned Ford spokesperson Jennifer Flake.

Sydney-based Lake Assets is listed on the Australian Inventory Trade, which requires provide offers to be publicly disclosed.

The Kachi challenge, in northern Argentina close to the Chilean border, is anticipated to price about $540 million and open by 2024.

Lilac’s expertise makes use of 10 tonnes of water for each tonne of lithium produced. Lilac has mentioned it might use a desalination plant to filter brackish water to keep away from utilizing potable water.