Ford signs deal with Aussie miner as decarbonising gains pace

Ford could soon be sourcing lithium for its electric vehicle (EV) batteries from Australian miner Lake Resources.

The mining company announced it had signed a memorandum of understanding (MoU) with Ford, with the Blue Oval looking to buy around 25,000 tonnes of lithium each year, sourced from Lake Resources’ Kachi Project site in Argentina.

“As we’ve shared, Ford is sourcing deeper into the battery supply chain,” said Lisa Drake, Ford’s Vice President of EV Industrialisation.

“This is one of several agreements we’re exploring to help us secure raw materials to support our aggressive EV acceleration,” she said.

The Kachi mining site uses a relatively new technology to extract the lithium, which has a far lower environmental impact than traditional methods.

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“Both Lake and Ford see this as an opportunity for a potential long-term agreement with the ability to scale up environmentally-responsible production and participate in Lake’s other projects to ensure high-quality lithium products are available to Ford,” Lake’s Managing Director, Steve Promnitz, said.

Car manufacturers are putting increasing pressure on metal mining companies to clean up their acts, as they seek to reduce carbon emissions throughout the automotive supply chain.

“If you want to do business with us in the future, you need to have a sustainable business strategy,” Mercedes-Benz CEO Ola Källenius said during an online presentation, according to Automotive News Europe.

On Monday, the German car giant announced it was aiming to halve its carbon footprint per car by 2030, compared to 2020 levels.

Mercedes-Benz Chief Technology Officer Markus Schäfer said 90 of the carmaker’s external purchases will be carbon neutral.

“We have integrated sustainability requirements into all our purchasing activities and awarding processes,” Schäfer said.

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Lake Resources Chairman Stu Crow said environmentally-responsible practices are not only being demanded by buyers, but also by banks and investors.

“Increasing customer and consumer scrutiny around lithium production’s environmental and ethical credentials drives our focus on sustainable extraction,” he said.

“Lake Resources is committed to integrating sustainable development practices throughout our operations, minimising our environmental footprint, and contributing to a clean energy future.”