Sign up now for FREE unlimited access to Reuters.com Register DETROIT, July 21 (Reuters) – Ford Motor Co ( FN ) on Thursday announced a series of deals to accelerate its shift to electric vehicles, including sourcing battery capacity and raw materials from companies such as Chinese battery maker CATL (300750.SZ) and Australian mining giant Rio Tinto (RIO.AX). The deals are part of Ford’s drive to reach an annual global EV production rate of 600,000 vehicles by the end of 2023 and more than 2 million by the end of 2026. Ford said it expects a compound annual growth rate of EVs to reach 90% by 2026. more than doubling the industry’s projected growth rate. “We’re putting the industrial system in place to scale quickly,” said Ford CEO Jim Farley. Sign up now for FREE unlimited access to Reuters.com Register In March, Ford raised its planned EV spending through 2026 to $50 billion from a previous target of $30 billion and reorganized its operations into separate units focused on electric and gasoline vehicles with the Ford Model e and Ford Blue, respectively. read more The Dearborn, Michigan-based company also said at the time that its EV business would not be profitable until next-generation models begin production in 2025. As part of its push to boost capacity, Ford said it is adding lithium iron phosphate (LFP) cell chemistry for EV batteries to its portfolio, along with nickel cobalt manganese (NCM). Ford said it has secured all 60 gigawatt hours (GWh) of cell capacity needed to support the 600,000 operating rate. The American automaker said CATL will supply complete LFP battery packs for North American Mustang Mach-E crossovers starting next year, as well as F-150 Lightning pickups in early 2024. The company also works with LG Energy Solution and long-time battery partner SK Innovation.(096770.KS) Ford said it has now procured about 70% of the battery capacity it needs to achieve its annual production rate of more than 2 million by the end of 2026. To support the battery cell deals, Ford said it is also sourcing battery cell raw materials, announcing deals to source most of the nickel needed through 2026 and beyond through deals with Vale SA’s Canadian and Indonesian units. the Chinese Huayou Cobalt (603799); SS) and BHP. It has also closed lithium contracts through deals with Rio Tinto, exploring a “significant” deal to offload lithium from the miner’s Rincon project in Argentina, Ford said. This is part of a multi-metallic deal that leverages Rio Tinto’s aluminum business and includes a potential opportunity in copper. Ford has announced other deals on battery materials. It signed a letter of intent with EcoPro BM and SK On to set up a cathode production plant in North America, an acquisition agreement for ioneer Ltd ( INR.AX ) to supply lithium carbonate from Nevada after 2025, an agreement with Compass Minerals for lithium hydroxide and lithium carbonate from Utah, and a deal for Syrah Resources ( SYR.AX ) and SK On for natural graphite from Louisiana. The 600,000 EV rollout rate by the end of 2023 includes 270,000 Mustang Mach-E crossovers, 150,000 F-150 Lightning pickups, 150,000 Transit vans and 30,000 units of a new SUV for Europe, production of which will increase significantly20. (This story corrects reference to Rio Tinto’s aluminum business, not Ford’s in paragraph 11) Sign up now for FREE unlimited access to Reuters.com Register Reporting by Ben Klayman in Detroit. Edited by Bernadette Baum Our Standards: The Thomson Reuters Trust Principles.
