Global leading automakers such as Ford, General Motors, and many others are striking deals with mining companies in order to continue electric vehicle (EV) battery production amidst lithium supply chain issues.
The auto executives are bypassing suppliers and negotiating immediately with lithium mining companies, each spending millions of dollars on deals in a bid to avoid falling further behind in the race to electrification.
Companies are investing in mines located in places like Chile, Argentina, Quebec and Nevada to secure lithium and other metal sources. Without lithium, U.S. and European carmakers won’t be able to build EV batteries and will trail behind Tesla and Chinese companies that have been taking the global lead.
General Motors struck a deal last year with lithium company Livent for material from South American mines and in January, the automkaer agreed to invest $650 million in Lithium Americas to develop the Thacker Pass mine in Nevada.
Ford Motor has struck lithium deals with Chilean supplier SQM, Albemarle in Charlotte, and Nemaska Lithium of Quebec, in an attempt to secure their battery production.
Many automakers have electrification goals to reach, such as General Motors who have plans for all its car sales to be electric by 2025.
Lithium shortages have forced carmakers to directly acquire the metals needed to build their EV batteries and have it sent to battery factories.
Sham Kunjur, participant in General Motors’ program to for battery materials, said:
“We quickly realized there wasn’t an established value chain that would support our ambitions for the next 10 years.”
Eric Norris, president of the Lithium global business unit at Albemarle, added:
“Lithium is going to be tough to get and to fully electrify here in the U.S.”
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