SQM - SQM Albemarle to supply Ford with lithium products for EVs

2023-05-22 12:23:34 ET

Add Sociedad Química y Minera de Chile ( NYSE: SQM ) to the list of companies that unveiled a long-term agreement Monday to supply Ford Motor ( F ) with lithium products for the automaker's electric vehicles.

SQM ( SQM ) said its lithium should help Ford electric vehicles qualify for the Inflation Reduction Act consumer tax credits and expand its presence in the global electric mobility markets, but the announcement provided no specifics.

Rival lithium producer Albemarle ( NYSE: ALB ) also said it reached a supply deal with Ford for lithium hydroxide starting in 2026.

Albemarle ( ALB ) said its five-deal deal will supply more than 100K metric tons of battery-grade lithium hydroxide for ~3M future Ford electric vehicle batteries.

The companies also said they plan to explore collaborations to develop a closed-loop solution for lithium-ion battery recycling

The SQM ( SQM ) and Albemarle ( ALB ) deals are among a slew of supply chain agreements unveiled by Ford in ramping up its EV efforts; SQM shares are little changed in Monday's trading, while Albemarle +1.7% .

More on SQM:

• Financial and valuation comparison to sector peers
• Analysis: SQM: My Best Lithium Pick As Chile's President 'Plans' To Nationalize Lithium
• Stock price return: Down 7.5% YTD, down 30% in the past 12 months

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