Ford could look to WA to power its EV fleet
By Danielle Le Messurier, The West Australian

US car giant Ford could use lithium hydroxide sourced from WA's Greenbushes mine in its electric vehicles as part of a supply agreement with battery minerals heavyweight Albemarle.

The companies have inked a five-year agreement under which Albemarle will supply more than 100,000 tonnes of the raw battery ingredient for approximately 3 million Ford EV batteries, starting in 2026.

The latest deal follows a rush of activity in the lithium sector, including a $15.7 billion tie-up between Allkem and Livent and South Korea's LG Energy investing $20 million for a slice of Green Technology Metals.

Albemarle waded into the heated market itself in late March when it attempted a $5.5 billion play for Tim Goyderchaired lithium company Liontown Resources.

The US-based group said in a statement it was committed to supplying America's EV supply chain with lithium hydroxide produced domestically or purchased from a country with a Free Trade Agreement with the US.

It has also vowed product would only be sourced from mines that have been accredited through an independent audit based on the Initiative for Responsible Mining Assurance.

The massive Greenbushes mine, about 250km south of Perth, in which Albemarle has a half-share with China's Tianqi Lithium , could be one option given its intentions to attain IRMA accreditation.

A spokeswoman for the mine's operator Talison Lithium on Tuesday confirmed it was “currently progressing through the self-assessment phase” of the IRMA process.

Credit Suisse analyst Saul Kavonic said he expected to see a continuation in the trend of carmakers seeking to ensure security of supply of critical battery minerals and producers capitalising on deals.

Volkswagen, Tesla and Mercedes-Benz are among those buying equity stakes in lithium companies and mines.

“Supply chains are being viewed beyond just economics but also the geopolitical context in which they're in and the ESG pressures around them, and we're increasingly going to see geopolitics and ESG pressures factor into where car manufacturers choose to source their lithium from,” Mr Kavonic said.

He added Australia was “very well placed” to have a competitive advantage for supply, noting the country's strong environmental, social and governance standards and close ties to Europe and the US.

Albemarle recently announced it was investing up to $US1.5 billion ($2.25b) to double the lithium hydroxide capacity of its Kemerton plant in WA's South West to 100,000 tonnes a year - enough to produce batteries for 2.4 million EVs annually. First production on two new trains is expected in 2026.

The company's lithium footprint in the State also includes joint ownership of the Wodgina mine in the Pilbara with Mineral Resources.

“With the growing demand for EVs in the US, our customers are seeking to regionalise their supply chain for greater security, sustainability and lower costs,” Albemarle energy storage president Eric Norris said in a statement.


Great news for SRL. Australia is best placed for ESG creds. Lets hope Sam can put pen to paper soon.