Ford secures the supply of lithium, the raw material for making electric vehicle batteries for the next 5 years. The brand from the United States has collaborated with an Australian company, Liontown.
Liontown will supply Ford with lithium spodumene concentrate, which is an essential component for manufacturing electric vehicle batteries. Unmitigated, the material supplied will reach 150 thousand metric tons. Liontown will supply 75,000 dry metric tons (DMT) in 2024, then increased to 150,000 DMT in the third year.
To make this plan a success, Ford is reported to have injected funds into Liontown amounting to USD207.21 million. Quoting from Reuters, the funds will be used to further develop the Kathleen Valley project.
This collaboration was carried out by both with the aim of pushing the decarbonization plan and the zero emission target launched by the United States government. Not only that, this supply can accelerate the fulfillment of the demand for the production of electric vehicles from the United States brand.
Liantown doesn’t just supply Ford with raw materials for batteries. Previously, they had also signed agreements with South Korea’s LG Energy Solution and Tesla.
Liontown shares on Wednesday morning trading (29/6/2022) were observed to have jumped 17 percent. During the day the stock rose 5.6 percent again to make Liontown’s market capitalization shot up to around 2.5 billion US dollars.
